Rate Cut 1/2 or 1/4

Quote from Point Man:

Tomorrow is what dreams are made of. Will the Fed cut rates by a half or will they cut by a quarter? Truthfully, the pit traders I speak to want a half and most are anticipating a half. To them a half means no more rate cuts in the future and then we can begin to price in rate increases. If we get a quarter or a half, there are no rate rises to be priced in for years to come. There is an election next year. You do not raise interest rates before an election. The Democrats will be all over a rate increase. Look for a 1/4 this time around with more to follow in the fall.


Tomorrow is what dreams are made of ?????? Seems to me that after the ninth glass of wine, the 10'th just doesn't make that much difference.

It would suit me to see a 1 point increase.
 
The more I read all the press reports, I am convinced now that the Fed will cut by 1/4. It is like their hand is being forced by numerous expectation influences. Nitro I think you are right.
 
Quote from TGregg:

Put me in the 1/4 point boat as well. Check out http://www.federalreserve.gov/releases/h6/Current/

The one week average of M1 has declined two weeks in a row. The one week average of M2 has barely grown over this last week and M3's one week has fallen.

Imagine the horror if the Fed started tightening. . .

and the 1/4's take it by a nose... do you follow the money supplies, i want to follow it closer, i am familiar with what it is how it operates, theory, etc..., but dont know teh finer points, i.e i am not familiar with all the differences between m1, 2 and 3

also does anyone know a resource where you can find reports on otehr open market activities the fed is doing other than fed rate?

lotta talk about the fed needing to expand money supply!!
 
Back
Top