What happens next in the volatile world stock markets could depend on Federal Reserve chief Ben Bernanke. The Fed is expected to cut the interest rates banks charge each other for overnight loans, currently 5.25%. It would make loans cheaper, boost consumer spending, revive stock prices and ultimately, prevent an economic slide, notes USA Today.
A one-quarter point cut is considered the most likely scenario when the Fed meets tomorrow, but some analysts expect a much bolder move aimed at creating a major economic upturn. "It's the most forecasted rate cut in history," warned one expert. "If they don't cut, expect a 500-point drop in minutes."