FXstreet.com (Barcelona) - The Federal Reserve is about to adopt an aggressive monetary policy decision, as they are expected to cut interest rates by a minimum of 50 basis points, and a maximum of 1 whole perceptual point, according to most market sources.

In a context of high financial uncertainty and with a growing concern on a forthcoming recession, the Fed has focused its efforts on easing the credit crunch, in that direction, the bank has recently adopted an emergency rate cut on Sunday and supported a deal to sell the Bearn Stearns Cos to JP Morgan Chase & Co.

The general economic context points out to a sharp slowdown on economy, Industrial output has declined 0.5% in February, with fuel prices at all time highs, and the consumer sentiment down to a level close to recession.

The Fed's benchmark interest rate is now at 3% and it could be cut to a maximum of one perceptual point to 2%, which could complete the sharpest six-month decline in interest rates of the latest 20 years.