The investment world is waiting for the U.S. Federal Reserve board to today announce if it will cut its federal funds rate for the first time in four years.

U.S. stock index futures were all slightly higher today, in anticipation of a rate cut.

The Fed announcement is expected at 2:15 pm ET.

The rate, which is the interest banks charge one another, has remained at 5.25% since June 2006. Most analysts predict a cut of a quarter point, or possibly even half a point.

The funds rate has not been cut since June 2003, when it reached a 1958 low of 1% following 13 straight reductions over more than two years.

Today’s expected reduction would follow the Fed’s decision on Aug. 17, when it unexpectedly lowered its discount rate by half a point. The rate is the interest it charges for direct loans to banks.

The actions are sparked by weakness in the U.S. housing market, particularly chaos in the subprime mortgage sector.

The surging C$ today opened at 97.41 cents US, up 0.13 of a cent.

Crude oil prices remains just above US$80 a barrel.

Elsewhere on the markets, Britain’s FTSE 100 gained 0.4%, France’s CAC-40 rose 0.2% and Germany’s DAX index shed 0.1%.

Japan’s Nikkei index fell 2% after a Monday holiday. Hong Kong’s Hang Seng Index lost 0.09%.