3% fed funds by May 08: Fed fund futures

Market has now fully priced in 3% or less fed funds by May 08. That's 3 more meetings. It really is pointless discussing what fed will do in the end of January because they will make up for it at the next meeting. My prediction: 75, 25, 25

 

I agree with your prediction. After the 75 basis point cut the Dow jumps 500 points.

 

Maybe short-term, but long-term it will plunge 500+ from where we are at - rate cuts are the last thing this market needs to correct itself.

 

It's 2002 all over again!