NEW YORK -- Wall Street gave up sharp gains and closed lower Wednesday after the Federal Reserve cut interest rates by a quarter point but left investors guessing about the central bank's next move. The Dow Jones industrial average, momentarily soaring above 13,000 for the first time since early January, ended the session with a modest loss.

WASHINGTON -- The Federal Reserve, which began the year aggressively fighting a severe credit crunch and economic weakness, may push the pause button after delivering perhaps one more quarter-point cut in interest rates.

The central bank trims rates by a quarter of a point, but many analysts had hoped for a half-point reduction. Dow Jones sinks 294 points. The Federal Reserve trimmed its key lending rate for the third time in a row Tuesday. But the quarter-point cut was smaller than many expected, indicating uncertainty at the central bank over how serious a threat the turmoil in the nation's financial markets poses to the economy.

WASHINGTON D.C. — The Federal Reserve is expected to cut interest rates this week. Analysts believe the fed will cut the rates by a quarter point. The Fed cut rates one half of a point last month. Since then, crude oil futures have risen sharply, adding potential concern about inflation risks.