According to history, the Fed did a surprise rate cut of 50 bps on Jan 3, 2001 then another 50 bps rate cut at the Jan 31, 2001 meeting. If rate cuts take 6+ months to take effect, why not have waited for Jan 31 to cut a full 100 bps? Or cut 100 bps entirely on Jan 3? It is their decision entirely. All history teaches us and proves is that the Fed has and can cut between and before meetings. Whether it is 28 days or 13 days before is not our decision to make is it? Point is, I'm not sure which history book you are reading.
good Lord! If you are long and trapped, sell. If you are right and short, get ready to cover 1/2. How many of the people that think that fed will save you traded the last time (1/01)?
what's the purpose of a surprise rate cut, other than to shock certain participants in the market for the benefit of others? why would the fed use surprise if the intended effects are delayed over long periods of time?
Seems like we won't be getting a rate cut today. Futures are holding up very well considering all the technical damage done to the market yesterday. We might get some selling here in the AM from those disappointed by the lack of Fed action and also wary of buying after such a big gap up.