The Federal Reserve heads into its meeting next week with three choices, each carrying its own advantages as well as drawbacks. Policymakers either can choose to hold interest rates steady, cut by a quarter or a half point. Raising rates isn’t an option and may well not be for several years. Markets are indicating that they have it figured out: The Federal Open Market Committee most likely will cut by a quarter point, with a small chance of a half-point reduction. There’s virtually no chance given to holding steady, though two regional Fed presidents recently have said that’s exactly what the committee should do. ... (full story)