Fed cut in the middle of trading day?

Discussion in 'Trading' started by DisciplinedHedg, Oct 6, 2008.

  1. Does anyone remember days when/if the Fed did an emergency rate cut in the middle of the day?

    Searched and couldn't find much and my memories hazy.

    Fed fund futures are at 100% 50bps rate cut for this month.
     
  2. not in either 2007 or 2008 did an emergency cut ever come during trading hours. always happened in the morning.
     
  3. it was obvious they needed to cut with the sell off from the House bill and the futures heavily underwater. I think Bernanke might secretly want a depression in order to try out the mad scientist economic theories he's been concocting over at Princeton. wouldn't you want proof of your brilliance if you were in his position? his life work has been focused on how inflation can stave off depressions.
     
  4. Fed almost always cuts at 2:15 PM.
     
  5. newbunch

    newbunch

    How about 1998. Was that intra-meeting cut before the open or during the day? I don't remember.
     
  6. Emergency rate cuts, my man, not regular FOMC interest rate decisions.
     
  7. Everytime I read that Bernanke went to Princeton, I think "Oh shit, my Dad went there, graduated with honors, and had NO idea how to handle money!"
     
  8. Peri

    Peri

    Lord was it that long ago? Non Fed day, rate cut in the afternoon, I almost put on a short but went to stop a cat fight. When I got back to desk I was glad for the cats.
     
  9. dve250

    dve250

    I remember a couple cuts intraday back in 2001 or 2002, not sure exactly. Not wise to be holding a short position when one is expected.

    One of the cuts was in the morning session. I was short an e-mini but got out without too much damage since I was watching the screen closely. Back then it was more like a game, Greeny was just screwing with the markets by cutting intraday. This time the melt down looks to be for real though.