things would still have turned out bad if 9/11 didn't happen. remember, the stock market had just burst in 2000-2001, unemployment was increasing, the economy was in the dumps. the fed was already in the process of lowering rates even before 9/11. ff's fell from 6.25 in 2000 to 3.0 pre-9/11 and probably would have kept falling regardless of 9/11. as you can see, much of cuts had already taken place.
75 bp cut
- Thread starter kashirin
- Start date
things would still have turned out bad if 9/11 didn't happen. remember, the stock market had just burst in 2000-2001, unemployment was increasing, the economy was in the dumps. the fed was already in the process of lowering rates even before 9/11. ff's fell from 6.25 in 2000 to 3.0 pre-9/11 and probably would have kept falling regardless of 9/11. as you can see, much of cuts had already taken place.
Feb Fed Funds futures trading at 96.43! That roughly implies the market expects a 72% chance of a 75 bp cut. WoW! Anyone else short and getting killed here?
