FXstreet.com (Barcelona) - The US Federal Reserve is expected to cut interest ates later today at their monthly monetary policy meeting, in a context of high inflation and mixed economic data, a 25% rate cut is forecasted nby a majority of finantial analysts but a 50 basis points rate cut is not discarded.

The Federall Reserve lowered its key interest rate by 0.25% to the current 4.5% at its October meeting, with the expectation that the upside risks to inflation would balance downward risks to growth, however Bernake recently stressed the importance of the renewed financial markets' turbulence which, together with a decreasing consumer spending, makes economic risks somewhat higher than inflation risks.

Recent economic US data has eased fears of recession, as employment has risen strongly iduring the past two months, and pending home sales increased surprisingly.