Economists expect Fed rate cut

WASHINGTON, Oct. 27 (UPI) -- A majority of economists surveyed last week indicated they expect the U.S. Federal Reserve to cut lending rates at this week's policy meeting.

A USA Today survey of 45 economists found 82 percent indicated a rate cut was likely, with 44 percent saying a half-point cut was likely and 38 percent indicating a quarter-point cut was likely.

"The financial crisis has finally pushed the economy over into a real recession," said PMI Group chief economist David Berson, who said he expected a half-point reduction.

In the survey conducted last week, 44 of the 45 economists indicated the U.S. economy is in a recession. The "consensus view" USA Today said was that the economy shrank by 0.5 percent in the third quarter.

The initial government estimate on the gross domestic product for the third quarter is due Thursday. A Federal Open Market Committee announcement on the lending rate is expected Wednesday afternoon.