NEW YORK, March 15: Unable to shake off credit market angst, Wall Street turns its attention to an upcoming Federal Reserve meeting where policymakers will attempt to restore market confidence.

Confidnce was shaken again in the past week as investment giant Bear Stearns said it had gained emergency funds from the Federal Reserve Bank of New York and rival bank JPMorgan Chase to shore up its stretched finances.

Market participants said Bear Stearns’ woes, triggered by mounting losses from mortgage-backed securities, and ongoing economic worries will likely spur the Fed to cut US interest rates at a policy meeting on Tuesday.

Most economists expect the US central bank to cut its key short term federal funds interest rate, but opinion is divided over the size of a possible cut. Analysts believe it will be between 50 and 100 basis points, marking a significant reduction in borrowing costs.

The Fed has slashed its fed funds rate by 225 basis points to 3.00 per cent since September in a bid to shore up economic momentum which is being threatened by a multiyear housing slump, a credit crunch, rising jobs cuts and skyrocketing crude oil prices.Despite such turmoil, the stock markets mostly posted modest gains in the past week.

The leading blue chip Dow Jones Industrial Average rose 0.48 per cent for the week ended Friday to close at 11,951.09 points, although the index is down 10 per cent for the year to date.—AFP