According to the TED Spread, short dated notes, and the Fed Funds Futures Market, they will. David
Merkel Gaffen (whoops!) at the WSJ Marketbeat Blog elaborates:
It was not until Sunday that the idea of the Federal Reserve actually reducing rates in the market Tuesday became a possibility. Now the market is depending on it, as futures markets are pricing in 100% odds that the slide-rule committee will lower rates at its meeting.
And by how much?
[David Rosenberg, chief North American economist at Merrill Lynch] believes the Fed will lower rates by a half-percentage point Tuesday.