WASHINGTON (AFP) -- The U.S. economy is often compared to a supertanker and although Tuesday's interest rate cut by the Federal Reserve may ease its passage, corporate America is bracing for stormy seas ahead.

Many economists expect an almost two-year-long housing slump, tighter credit and high energy costs to slow U.S. economic momentum and dent corporate coffers in coming months.
The Fed, in announcing a quarter-point cut in U.S. borrowing costs to 4.25 percent, said it appears that ""economic growth is slowing"" which it partly blamed on softer business and consumer spending.
U.S. stock markets plummeted in the wake of the announcement signaling Wall Street's disappointment that a heavier rate cut was not implemented. The Dow Jones Industrial Average closed down 2.1 percent while the broad market Standard and Poor's 500 index lost 2.5 percent.
Some large corporations have cut their profit forecasts in recent weeks as concerns mount about whether the world's biggest economy will slide into a recession.
""A mild recession is now likely,"" economists at Morgan Stanley said in a research note released Monday, adding that further Fed rate cuts are also likely.
Corporate earnings
The Morgan Stanley economists expect corporate earnings to contract by between five and 10 percent through much of 2008. Other analysts remain more upbeat, however.
Corporate chieftains usually curtail spending and investment during leaner economic times which in turn contributes to slower economic growth.
Big financial firms, which have already lost billions of dollars, and mortgage companies are suffering the worst pain from the housing meltdown and credit crunch.
H&R Block, a leading tax advisor, announced a half-billion dollar loss earlier Tuesday for its latest financial quarter. Most of the loss was attributed to the firm's now discontinued mortgage business.
Washington Mutual, a large savings and loan company, announced Monday it was halting sub-prime mortgage lending, laying off over 3,000 employees and cutting its quarterly dividend as it fights to restore its financial health.
Analysts at Citigroup said Tuesday that WaMu's measures should help shore up its finances, but described its moves as ""desperate"" and lowered their stock rating on the company to a ""sell.""
Citigroup, America's second-largest banking group by market worth, is enduring its own mortgage-related woes.
The banking behemoth's former CEO Charles Prince said before stepping down last month that Citigroup was facing likely investment write-offs of between eight and 11 billion dollars.
The bank placed large advertisements in the U.S. press Tuesday, including the Wall Street Journal, aimed at soothing investors' nerves during ""uncertain times.""
The ads said financial volatility would likely continue, but that Citigroup's bankers have the experience to usher clients through the ""market trauma.""
Mounting mortgage investment losses, especially from subprime home loans granted to Americans with patchy credit, have jolted US and global markets in recent months.
Economists fear the credit squeeze and a surge in home foreclosures could spill over into consumer loans and pinch other sectors such as auto makers.
U.S. light vehicle sales fell last month to 1.179 million, 1.6 percent down from a year earlier, and some analysts believe the lingering housing downturn could drag down car sales.
Companies also continue to be buffeted by high oil prices which last month hovered near record peaks of 100 dollars a barrel. Delta Air Lines executive vice president, Glen Hauenstein, said last week the airline was experiencing ""some softening from recent robust domestic demand"" amid high fuel prices.
Many American companies and shareholders are still profiting handsomely though.
Aviation and defense giant Boeing, riding a wave of new aircraft orders, announced a hefty 14 percent hike in its dividend payment to shareholders Monday.