In anticipation of a possible economic recession, the Federal Reserve Board cut interest rates for the second time in a month, dropping U.S. interest rates by half a percent Wednesday.”The Federal Reserve presumably has a pulse on what is going on in the economic society, and they are trying to stimulate consumers and business to spend more,” said Terry Alexander, adjunct associate professor of agricultural economics.This may not be the end of the cuts in the near future, he said. Many economists are predicting more cuts in the targeted-federal interest rates, Alexander said.”The average citizen will be affected by these cuts,” he said. “What happens when the Federal Reserve cuts interest rates is the banks also cut interest rates for consumers. A number of banks have been anticipating these cuts and the rates that banks charge on loans on houses and credit cards are going down.”The worst thing people could do is worry about the future, Alexander said, because fear causes recessions. If people fear, they start saving their money, and the economy goes into a recession, he said.While some aspects of the economy are slowing down, there are other areas that are not, Alexander said. As long as the Federal Reserve keeps tabs on the economy, there is no need to worry about a recession, he said.A statement released by the Federal Reserve Board Wednesday said: “Consumer and business confidence has eroded further, exacerbated by rising energy costs that continue to drain consumer purchasing power and press on business profit margins.” The full statement can be accessed at www.federalreserve.gov.The Bush administration is also dealing with the problem of a slowing economy.”Bush is going to try to get a tax cut,” said Robert Lowry, associate professor of political science. “I don’t think that the tax cut is based on a short-term stimulation. His goal has been to give the people back the money from the surplus.”Bush might change his tax plans in structure, but if the Federal Reserve tax cuts stimulate the economy, he may not feel the need to adjust the tax proposal, Lowry said. Bush’s tax-cut plan, which will not show immediate benefits, is not popular with many people, he said.”A lot of people don’t think that a tax cut is a good idea, because people don’t see the effect for a year,” Lowry said.