United States central bank, Federal Reserve today expected to cut interest rate for the 10th time in last one year to stabilize the sliding economy.

Federal Reserve chairman Ben Bernanke is expected to cut 0.5% or 0.25% from the current 1%.

The federal fund rate is the interest rate at which banks lend balances at Federal Reserve to other banks.

Even though US witnessed 11 recessions after World War II, analysts feel that current one is more deep and wide.

Since interest rate is approaching to zero now options for Federal Reserve also limited. So far Fed cut interest rate many times this year to boost the economy, but that didnt help much.

"Home prices are still falling, unless it stabilize we cannot see a recovery in the economy" says an expert.

Major three auto giants, General Motors, Ford and Chrysler are running out of cash and may collapse if White House fails to pass the auto bailout package.

Now the $50 billion fraud by former Nasdaq chairman Bernard Madoff reveals the vulnerability and US financial system. Economists across the world criticize US regulators for this multi-billion dollar scam.

Many big banks suffered heavy losses in Madoff pyramid style fraud. HSBC yesterday revealed that they had exposure to Maddoff's holding up to $1 billion. Other banks hit by this huge fraud are Britain's RBS, Spain's Santander and France's BNP Paribas.