Reply #6: Fed unlikley to cut rates before next meeting: WSJ

[ozymandius]

TOKYO (Reuters) - The Federal Reserve is unlikely to cut interest rates before its next scheduled meeting in late January but may consider doing so if the outlook deteriorates sharply before then, the Wall Street Journal reported on Monday.

The article said the Fed is likely to keep rates on hold until then because last week's speech by Fed Chairman Ben Bernanke has already recalibrated market expectations towards a more aggressive half-point cut to 3.75 percent.

"But that could change if the outlook worsens sharply in coming days," the article said, without citing sources.

The Fed is seen slashing rates by a half-point at its two-day meeting ending on January 30 after Bernanke gave a downbeat assessment of the economy last Thursday and said the central bank was ready to take "substantive additional action."

http://news.yahoo.com/s/nm/20080114/bs_nm/usa_fed_wsj_dc