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The Fed: Half or quarter?
Everyone is betting that the Fed will cut interest rates this week. The question is: how much?
June 23, 2003: 2:51 PM EDT

NEW YORK (CNN/Money) - Almost everyone on Wall Street is convinced the Federal Reserve will lower interest rates yet again at its policy meeting ending Wednesday. But when it comes to the size of the cut, the debate is still raging. Will it be half of a percentage point or only a quarter?

Justin Lahart says:


By cutting by a quarter point, and leaving open the option to cut again in the future, the Fed will do the economy a lot more good than if it cuts by a half point.
(see full story)
  
Mark Gongloff says:


A big rate cut is probably still coming -- if the Fed really wants to take out some insurance against deflation, its own research says bigger moves are better.
(see full story)

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