Rate cut announcement due

Wednesday, June 27, 2001 | 10:50 a.m.

WASHINGTON -- Federal Reserve policy makers are prepared to administer another bracing tonic to an ailing economy that's showing some signs of improvement: a sixth interest rate cut.

Economists predicted that the Fed's chief policy-making group, the Federal Open Market Committee, would cut interest rates for a sixth time this year at its meeting today.

The announcement was expected after the Las Vegas Sun's printing deadline. But details will be available on the Sun's Internet website lasvegassun.com

Economists were unsure whether the committee would order a sixth half-point rate cut, or a more moderate quarter-point move.

Regardless of the size of the expected cut, Lynn Reaser, chief economist at Banc of America Capital Management, says it could be the last. "The economy should in fact start to show signs of stabilizing during the next two months as the interest rate cuts and tax cuts take hold," she said.

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