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Fed Expected To Cut Rates
To Lowest Level Since '62
1The Federal Reserve is widely expected to cut interest rates by at least a half percentage point when it meets Tuesday. It would be the ninth rate cut this year. Of 22 dealers contacted by Market News International, 18 said they expected the Fed to cut rates by 50 basis points. The rest expected a smaller quarter-point cut. The half-point reduction would push the benchmark fed funds rate to 2.5%. That would be the lowest level since May 1962, and a sign of the Fed's commitment to keep the U.S. economy from lapsing deeper into recession.
Bush Aiding Taliban Foes;
U.S. Attack Looms Closer
2President Bush approved a package of aid to groups in Afghanistan that oppose the ruling Taliban. The U.S. blocked $6 million in terrorist funds and froze 50 bank accounts, 30 in this country and 20 overseas. The Taliban defied U.S. demands to hand over Osama bin Laden. Pakistan's president said the days of Taliban rule could be numbered. Afghan groups, working with the former Afghan king, paved the way toward a transitional government to follow the Taliban.
Arrests: A man said to be linked closely to bin Laden was extradited from the United Arab Emirates and jailed in Paris. The U.S. charged a man in Virginia with helping obtain false documents for two of the Sept. 11 hijackers. He was cooperating with police.More on A3