Another Fed Cut on the Way?

Despite the Fed cuts' ability to spur the flagging economy, cutting too much will just make inflation even worse.

Fed likely to cut U.S. rates, could signal pause

CHICAGO (Reuters) - The U.S. Federal Reserve is expected to put an exclamation point on its string of interest- rate cuts with a small reduction this week and may signal that its rate-cutting cycle is done for now.

Rising global inflation and the Fed's hope that a blend of monetary and fiscal stimulus will shore up the anemic U.S. economy suggest the central bank is ready to pause in the sharp easing cycle it kicked off in mid-September.

Fed Chairman Ben Bernanke and his colleagues have lowered benchmark overnight lending rates 3 full percentage points to 2.25 percent over that span.

Read the full story.