WASHINGTON - U.S. central bank policymakers are meeting Tuesday to consider lower interest rates in an attempt to address concerns about a weakening economy.

Many economists say the U.S. Federal Reserve could cut the key rate by as much as one percentage point to two percent to try to ease a U.S. credit crisis and stimulate the struggling economy.

U.S. Treasury Secretary Henry Paulson acknowledged today that the U.S. economy is experiencing a sharp downturn. He says U.S. policymakers are working to prevent financial market turbulence from worsening the economic situation.

Major stock indexes in London, Frankfurt and Paris were gaining more than two percent, while benchmark indexes in Tokyo and Hong Kong closed up more than one percent.

European stock markets had fallen sharply Monday as investors reacted to the near collapse of troubled U.S. investment bank Bear Stearns.

Another U.S. banking giant, J.P. Morgan Chase, agreed to buy Bear Stearns Sunday for a fraction of its worth a year ago, with the Federal Reserve taking on some of the financial risk.

Source:  VOA News