Official - Will The Fed Cut Rates? on 9/18 Discussion

[xxThe_Lebowskixx]

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probably 25 points but whether 25, 50 or none it shouldnt matter that much going out a ways. it is only a bandaid what they do right now.

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more details please.

[soko]

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probably 25 points but whether 25, 50 or none it shouldnt matter that much going out a ways. it is only a bandaid what they do right now.

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more details please.

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"Fed can't stop recession: Even if the central bank starts to cut rates aggressively, many of the risks for the U.S. economy are beyond its reach."
http://money.cnn.com/2007/09/13/news...atrick.net=yes

http://articles.moneycentral.msn.com/Inv...ref=patrick.net
http://pr-gb.com/index.php?option=com_co...ref=patrick.net

[adios]

I think the Fed cuts rates, the Fed is behind the curve by alot IMO. One rate cut doesn't matter that much, a series of cuts do though.

The statement: Inflation risk contained, downside risks to economic growth have increased, economic growth slowing but we don't see a recession on the horizon or some such.

[TheMetetron]

I generally dislike reading mainstream financial news as it is all reactionary and half the time gets the reasons for something wrong. I didn't click the links but I'm going to assume the same thing happens here.

I'd really like a rate hold in 20 minutes, but I'm realistically hoping for an only 25bps cut. 50bps would make me sad [img]/images/graemlins/frown.gif[/img] Luckily, I don't think that is very likely despite the market incorrectly (imo) pricing a decent chance of it in.

[gonebroke2]

Kiss the Dollar goodbye. Hope you guys got Gold or foreign currency.

[SlowHabit]

So sickkkk.

.5 points!!!

[TheMetetron]

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Kiss the Dollar goodbye. Hope you guys got Gold or foreign currency.

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Jesus Christ haven't read the report yet but I'm disappointed. 1/2 point for those who don't know. [img]/images/graemlins/frown.gif[/img]

Thank god for foreign exposure though I still feel too US heavy with 50% USA dollar-denominated equities.

[TheMetetron]

PS - If they cut rates again next month I'm going to be really mad. 50 bps isn't the world's worst thing if it is one off but I doubt it will be.

[soko]

"Release Date: September 18, 2007
For immediate release

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4-3/4 percent.

Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.

Readings on core inflation have improved modestly this year. However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.

Developments in financial markets since the Committee’s last regular meeting have increased the uncertainty surrounding the economic outlook. The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; William Poole; Eric Rosengren; and Kevin M. Warsh.

In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 5-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Cleveland, St. Louis, Minneapolis, Kansas City, and San Francisco."

http://www.federalreserve.gov/newsev.../20070918a.htm

[TheMetetron]

Gah the discount rate too?