New data poses US rate cut dilemma

US - For the fourth time this year the US central bank, the Federal Reserve, has to decide by just how much it will cut interest rates.

While most expect the Fed to reduce interest rates following a meeting of the bank's governors today, 15 May, recent data indicating strength in the US economy has some analysts wondering if the Fed might keep a cut to just 0.25% rather than a more aggressive 0.5%.

"At least one more aggressive rate cut would not be unreasonable at this time," said Ken Matheny,