The Federal Reserve is expected to cut the federal funds rate today as part of an ongoing aggressive effort to save the economy from the effects of the housing market slump and credit crunch.

The Fed’s policy-setting Federal Open Market Committee resumed its meeting at about 8 a.m., a Fed spokesperson said. The agency is expected to announce its decision at about 1:15 p.m. Iowa time.

Financial markets saw an 80 percent chance that the Fed would lower its benchmark overnight rate by one-half percentage point after a weak reading on fourth-quarter growth was released on Wednesday, as the central bank seeks to counter the risk of a U.S. recession. Any rate cut, following the surprise three-quarter-point reduction on Jan. 22, would mark one of the deepest and fastest rate-cutting episodes since the early 1980s.

In explaining its aggressive move last week, the Fed said the outlook for economic growth had weakened and downside risks had risen. Policy-makers also said businesses and households were beginning to feel the pinch of tighter credit.