Indeed TopD -In fact any mention or hint of a cut would likely cause a sell-off as that would be indicative or proof of an economy in trouble.- this is the perplexing part. We know if everything was normal he might even talk of raising rates and an strengthening economy-- there are some who say without the housing crunch and lack of consumer spending our GDP would be north of 4 now... But everything is not normal. People are stuck holding paper and that only gets exaggerated when rates go up so before the market does it for him a really ballsey move would be to hint at a rate cut tomorrow. The market may see it as I do that inflation concerns are receding a bit and growth is not so great as to run away with excessive optimism-- I don't think it would be a signal of a slowing economy just the normal More Neutral Position we can now take. Before I Believe The Fed's Minutes Indicated Neutral Leaning Towards Being Vigilant On Inflation and somehow through his silken tongue can Ben get across we are still standing pat but now with more of a lean towards -let's get this economy humming again- and perhaps the lowering of rates right at the scary Sept/ Oct season. As a whole this year feels like 1987.
One thing is for sure ardent students of the Fed know it is a mistake to underestimate Ben B, he's pretty smooth and he's pretty right.
PS- I know you're well capable of deciding for yourself but I pushed that stk hard. I owe you one.....
One thing is for sure ardent students of the Fed know it is a mistake to underestimate Ben B, he's pretty smooth and he's pretty right.
PS- I know you're well capable of deciding for yourself but I pushed that stk hard. I owe you one.....