WASHINGTON (AP) -- The Federal Reserve, which has already cut interest rates more aggressively this year than at any other time under Chairman Alan Greenspan, may not be through yet.
But analysts are hopeful that the Fed's next move may send a signal that economic dangers are lessening a bit.
"My expectation is that the next move will be the last rate-cutting move," said Tim O'Neill, chief economist at the Bank of Montreal and Harris Bank.
O'Neill and many other economists believe Fed policy-makers will cut rates again at their next meeting on June 26-27.
Wall Street, where the rate cut had been widely anticipated, took Tuesday's half-point reduction in stride. The Dow Jones industrial average finished the day down 4.36 points at 10,872.97.
The muted reaction was in sharp contrast to the 399-point rally triggered by the Fed's last rate move on April 18, which caught investors by surprise.
In the Fed's latest statement on interest rates Tuesday, policy-makers said they continue to believe that "the risks are weighted mainly toward conditions that may generate economic weakness in the foreseeable future."
Economists read that as the Fed holding the door open to further rate reductions.
"The Fed is ready to cut rates again by 50 basis points on June 27 if the business climate and labor markets do not show substantial improvement by then," predicted David Orr, First Union's chief economist.
Greenspan is following, with the taThe Fed's action Tuesday, the fifth half-point reduction this year, pushed down the federal funds rate, the interest that banks charge each other, to 4 percent.
The string of rate cuts, which began on Jan. 3, has lowered interest rates by 2-1/2 percentage points in 4-1/2 months, the most aggressive easing campaign under Greenspan.
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