Re: Official - Will The Fed Cut Rates? on 9/18 Discussion
While not as well versed on the subject as others on the board, I would guess the Fed will cut the FFR by .25%. I don't think Bernake particularly wants to given inflationary concerns and the negative pressure on the dollar, but I think he has been backed into a corner. The market expects a cut and the housing and credit markets are straining right now - I think the Fed will react. Still, I can't see the Fed making a half a percentage point cut right now, and I think the market has priced in greater than a .25% cut, therefore I believe the market will hold steady or slightly decline after the announcement. My 2 cents.
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