Seems there may be some chance the Fed could cut rates next
Tuesday if the markets are tanking. Likely announcement of
Lehman bailout plan over the weekend that won't involve Fed
funds. If market doesn't like that and cracks hard, Fed could
cut rates to support it, we've seen it before and now that oil and
commodities have cooled off they have more leeway to do that.
Just trying to stay on my toes, rate cut would likely cause a big
short term rally. Outside chance they cut ahead of meeting if
market heads down to July lows or below.... I got
caught short in a surprise Fed rate cut in the late 90's and took a
hit so I'm wary... Fed would pretty much be out of bullets if
they did that. Dollar is down quite a bit today and may be
sensing that. Of course it's overbought on the chart and was
overdue for a pullback.
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Seems there may be some
Posted by trade on 12th of Sep 2008 at 01:13 pm
Seems there may be some chance the Fed could cut rates next Tuesday if the markets are tanking. Likely announcement of Lehman bailout plan over the weekend that won't involve Fed funds. If market doesn't like that and cracks hard, Fed could cut rates to support it, we've seen it before and now that oil and commodities have cooled off they have more leeway to do that. Just trying to stay on my toes, rate cut would likely cause a big short term rally. Outside chance they cut ahead of meeting if market heads down to July lows or below.... I got caught short in a surprise Fed rate cut in the late 90's and took a hit so I'm wary... Fed would pretty much be out of bullets if they did that. Dollar is down quite a bit today and may be sensing that. Of course it's overbought on the chart and was overdue for a pullback.