Emergency Rate Cut Tomorrow?

I think a 75 bps cut would turn this thing around. Is the FOMC still worrying about commodity inflation? If we are in the dire straits the administration and congress claims, then what is keeping the Fed from stepping up?

 

50 basis points tomorrow. They'll do it while trading is light for the Rosh Hashanah holiday. Makes the market easier to manipulate.

 

Another rate cut is just another bandaid.

 

cut 1000 basis points, penalize pple for holding shit in banks

 

Yes, but from their perspective, they will probably hope the bandaid will last long enough for the bailout plan to be passed.

 

Bring the rate down to 0.

 

I think the Fed is undercutting the Treasury's claim that the world is about to end without this plan. If things are so dire for the financial sector, shouldn't the Fed be doing something? What would be better than an emergency rate cut?

I saw another Fed idiot, Hoenig, was out saying they were worried aobut inflation. Are you kidding me? He sounds like a steward on the titanic pompously lecturing passengers not to misalign the deckchairs.

Either there is a crisis or there is not. If the current Fed chairman is not up to the job, and he has proven pretty conclusively he is not, then we need a new one.

 

Exactly.The markets' main problem is a lack of liquidity,which wouldn't necessarily be solved by a cut in policy interest rates.

It is not a feasible alternative to the bailout plan.Everyone thought that slashing interest rates when they were at 4.75% a year ago would save the housing market and breathe life into the banks.And it didn't work.Ultimately,neither would a rate cut now.

 

No cut today. The fomc might not want to prop up the market then have the congress be hopeful the worst is over. heck even ron paul was out saying 'hey the market might not crash that bad' and this is the guy whos been a bear for all eternety. all of the sudden he turns bullish just so he can cast a vote that goes against his ideology

 

saw this on bloomberg wires today

-Futures on the Chicago Board of Trade show a 76 percent probability the Fed will lower its 2 percent target rate for overnight lending between banks by a half-percentage point at its Oct. 29 meeting, and 24 percent odds it will reduce the rate by three-quarters of a point. Traders saw no chance of a cut a month ago. -