FXstreet.com (Barcelona) - The Federal Reserve will probably announce a 25 basis points rate cut on Wednesday to 2%, to complete the seventh rate cut since august last year, pointing out to remaining concerns over the US economic slowdown.

Even though for some experts there is still a possibility of a surprising decision, the fear of entering a recession later this year, as Ben Bernanke recently warned, will probably turn the balance to the rate cut side.

The Fed is confronting a delicate economic context, there have been 232,000 job losses in the first quarter, and the University of Michigan Consumer Sentiment Index has slumped to the lower pace of the latest 25 years.

The main point of Wednesday's event, nevertheless, will be the Bank's statement, hints for affirmations about this rate cut to be the last one for a while, will be of special interest, as further rate cuts could fuel inflation to rather excessive levels and push the dollar to new lows, therefore, in case the odds are met, the Fed could leave interest rat4es at such low levels for the rest of this year, and the beginning of next one.