The official also sought to dispel speculation that the Administration was trying to cajole the Federal Reserve to reduce interest rates.

The data raised expectations that the Federal Reserve might reduce interest rates later this year.

Under mounting political and economic pressure to stave off a possible recession, the Federal Reserve reduced short-term interest rates today for the first time since 1992.

The Federal Reserve has reduced interest rates so aggressively that lenders are almost giving away money.

The Federal Reserve has reduced interest rates recently only after the publication of data showing fresh weakness in the economy.

She said rumors that the Federal Reserve might reduce interest rates circulated briefly, but no one appeared to pay much attention to them.

In June, for example, market analysts confidently expected the Federal Reserve to reduce the federal funds rate by a half percentage point.

The report raised fears that the Federal Reserve would not, as expected, reduce short-term interest rates when its policy-making committee meets tomorrow.

In the United States, the Federal Reserve has reduced interest rates five times this year and is expected to do so again shortly.

Stocks were mixed yesterday in thin trading, amid continuing expectations that the Federal Reserve would again reduce interest rates.