All Eyes Today Turn to Wall Street

FROM THE NEW YORK SUN

The Federal Reserve is also trying to do its part to improve the economy, but that too is being met with skepticism from investors. The Federal Open Market Committee is widely expected to cut its key interest rate by half of a percentage point when it meets next week. It already lowered its key rate three times last year, with the last on Dec. 11, when it sliced the rate to 4.25%, the lowest level in two years.

"Mr. Bernanke's rate cut will be a yawn, because it's what the markets expect," Mr. Flynn said of Federal Reserve Chairman Ben Bernanke. While investors say Mr. Bernanke should be more aggressive in cutting rates, economists are increasingly voicing concern that the cuts are inflationary.

It may be that despite the rate cuts and the fiscal stimulus package, little can be done to stem the market's slide.

"When an economy has overspent itself and over levered itself, a pull back is inevitable and there is nothing that Bernanke or Bush or anybody on Capitol Hill can do about it," a professor of finance at the College of Business Administration at Northeastern University, Harlan Platt, said.

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