Fed Appears Certain to Cut Rates, Post Says

Federal Reserve officials appear certain to cut interest rates when they meet next week, the Washington Post reported Thursday.

The article said the Fed would most likely cut rates by a half-point instead of a quarter-point because it would be an “exclamation point” to emphasize this would likely be the final step toward putting the economy on the growth path.

Reporter John M. Berry, a long-time economic writer known for his access to Fed officials, said they are concerned there is still no sign of a solid pickup in economic growth needed to eliminate the possibility of deflation.

Deflation is dangerous because as prices fall, profit margins are squeezed, forcing firms to eventually cut wages.

Low interest rates help spur consumer and capital spending, both of which can help the economy and the trucking industry.

A rate cut would be the 13th since January 2001.

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