There will be no Fed rate cut

Will the Fed cut rates next week?

  • Yes they will cut

    Votes: 148 59.7%

  • No they won't cut

    Votes: 100 40.3%
  • Total voters
    248
I think you maybe overstating the Feds view of $ weakness. I didnt think we would get a cut to bail out the credit crunch bu the weakness that appears to be coming through the general economy may give Ben boy the opportunity he needs so he can cut and not look like he is giving in to the Wall Street bullies.
 
Quote from atticus:

Take a look at FF futures.
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FF fuures are based on market expectation, but I do not think the market is right or better said I think they are premature.
 
Quote from Bob Rowshan:

Yes I know. And apparently alot of people are setting themselves up for major disappointment.

The dollar is already too weak, and the Fed knows crashing the dollar with a rate cut is not in the best interest of the USA.
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Do they?
If that's the case, don't you think they would have done something about it by now?

Remember, this is the corporation that says there is no inflation...

Falling dollar = higher commodity prices = more inflation...

DO you think they will acknowledge this until prices are out of control?
 
Quote from optioncoach:

FF fuures are based on market expectation, but I do not think the market is right or better said I think they are premature.
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Yes...and if they cut 25, you can make a quick 18BP by shorting the FFV...
If they don't cut at all, FFV will collapse...
 
Quote from Bob Rowshan:

Yes I know. And apparently alot of people are setting themselves up for major disappointment.

The dollar is already too weak, and the Fed knows crashing the dollar with a rate cut is not in the best interest of the USA.
More...

To the contrary, I think the dollar will actually rally. If the market knows the rate cut is coming, they will have positioned ahead of the cut. Dollars to be sold are being sold now.

Gold and t-bonds will also fall the day of the announcement.
 
One possible scenario; Fed cuts its rate; and suddenly all these refineries back online; massive gasoline on the market to the anticipated slowing down economy and drives the oil price down; then inflation goes down as well.

I still prefer not rate cut.
 
Quote from marketsurfer:

there is a HUGE triple top in the EUR. USD now.

whatever that means it means.

surf
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Leave it to surfer to put in his 2 cents without a concrete opinion. Typical surfer nonsense.
 
Quote from plugger:

To the contrary, I think the dollar will actually rally.
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That's what makes horse races. Two differing opinions on cause and effect. I still strongly believe the Fed won't cut rates because it will collapse the dollar. That's just one Bob's opinion :)
 
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