Is a Fed Rate Cut Coming Tomorrow?

by Alex Stenback on September 15, 2008

Fedfunds_080508208052008124938_2According 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.

{ 3 comments… read them below or add one }

David Merkel September 15, 2008 at 8:23 pm

Tsst… David Gaffen at the WSJ Marketbeat Blog. I’m over at Aleph Blog, though I have suggested that the Fed’s move would be a loosen, not a tighten… even though for now, they may do nothing with rates.

http://alephblog.com/2008/08/22/banking-on-continued-risk-in-lending-markets/

Andy September 15, 2008 at 9:12 pm

Not going to happen. Fed will stay the course and not cut rates.

Alex Stenback September 16, 2008 at 10:58 am

Whoops – sorry David, fixed.

All you David’s look alike, dontcha know…

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