Federal Reserve Wrestles With Interest Rate Cuts

WASHINGTON (AP) — With the Federal Reserve widely expected to reduce its key interest rate by a quarter-point to about 4.1%, economists and Wall Street investors will be looking Wednesday for signs of how deeply the Fed might cut rates in the next few months. There are typically two different approaches the Fed takes to lowering borrowing costs: Either a measured pace that typically reflects a modest adjustment to its key rate, or a much more rapid set of cuts as the economy deteriorates in an often-doomed effort to stave off recession. For now, most economists expect the central bank will take the recalibration approach.