Federal Reserve policymakers have a regularly scheduled meeting today, where analysts predict they will cut rates by a quarter or half-percentage point.
The weekend upheaval on Wall Street and a sharp drop in oil prices are the factors leading up to the possible rate cut, reports MSNBC.
Over the weekend, Lehman Bros. filed for bankruptcy protection and Merrill Lynch agreed to be taken over by Bank of America. Concerns over the stability of the financial system were provoked by news that insurance giant AIG was struggling to raise capital to stay afloat.
A rate cut would help struggling financial companies and could give a boost to the stock market, which suffered its worst day Tuesday in more than six years.
If the Federal Reserve cuts rates, this could make it easier for car shoppers to get financing for their vehicle purchase. It could also save buyers money in the form of a lower interest rate.