Fed May Announce Another Rate Cut Wednesday

Washington, D.C.–The Fed may announce another rate cut at the end of its two-day meeting in Washington, D.C. Wednesday, but more action may be needed to increase lending, Bloomberg reports.Since the Federal Open Market Committee’s last meeting in March, the cost of acquiring funds for three months has increased by 0.33 percentage points. And banks are still leery to lend to each other.The Fed may discuss the effect of their $100-billion-a-month Term Auction Facility during the meeting; Bloomberg forecasts that it may increase the size and time period of its biweekly auctions.Policy makers may also lower the benchmark rate to 2 percent, a quarter point reduction, to prompt economic growth.The statement is scheduled for just after 2 p.m.