Fed expected to slash US monetary policy this week

MARKET NEWS

WASHINGTON, DC -- Foreign exchange market participants say the Federal Reserve will make a dramatic cut in interest rates at this Tuesday's (March 20) Federal Open Market Committee (FOMC) meeting.

Although the economic situation is far from clear, most analysts agree a rate cut of at least 50 basis points is likely -- while futures markets are currently pricing-in 85 basis points of cuts over the coming months.

"It's safe to say the FOMC will cut this week," Jeremy Hawkins, chief economist at