Durable goods posted a 5.2% surge, versus expectations for only 1.6%. Foreign demand was very strong and excluding aircraft orders it was still a strong reading. Being the last major econ data release before the Fed meeting tomorrow I wonder how this will impact tomorrows rate decision. The fed would look silly cutting another 50bp tomorrow because that would amount to 125bp of rate cuts in the space of about a week! more silly considering the last weeks slide was most likely due to the rogue trader and recent econ data have not crumbled as people have been fearing. How can the fed justify 125bp of cuts? Funny thing is that considering all this recent information, market expectations for tomorrows meeting have not materially changed. So it seems the market knows it can lead the Fed, question is will fed acquiesce to market demands or will they base their decision on economic conditions. If it's the former, than a 50bp cut is likely, if the latter, perhaps no cut.