Fed should abolish itself. But they will print as much as they can get away with. Which means a 50 bp cut this time. Anything less will cause a big selloff.
If the FED raised rates this economy would go into a tailspin brutal recession. Then you guys would be complaining that they should cut rates.
This makes no sense, why would they raise rates if they are faced with a recession or even price shock stagflation? No the Fed will drop by 25 because it's the easy thing to do and their priorities have been anything but inflation lately. How about a no change announcement and see the market rally. Either way I'm fairly sure November is going to be a good month. 1615 SnP - it's coming.
By the commentary on this board I wonder if the majority of the people that post here are dumb high school kids? Or most likelydumb college kids. 20 something's. It is apparent that the vast majority have no clue whatsoever regarding trading securities, investing or the economy. Seems like a lot of rah rah from kids that are viewing the markets for entertainment purposes and don't trade (Posers). I would bet that the majority do not trade.
If everyone has this idea about the market rallying into the end of 2007 why does the fed have to do anything tomorrow? I mean we all know that the reason they exist is to keep inflation in check and not to keep the markets in rally mode. They should just wait till 2008 to make any change in rates, the market will fall once more and create a buying opportunity and all those who buy the dip should be rewarded at the end of 2007 when the DOW jumps past 14500.
Good points. I agree. I think the FED should not have done a .5 basis point adjustment last time around. It should have been .25 and another .25 tomorrow. They should not be catering to the stock market....but they are...and they will likely cut .25 tomorrow.
Also something most of you should realize( And I think most do) is that the FED should have no role in propping up the financial markets. But on the other hand the U.S. stock market is an important factor in preventing the U.S. economy from slipping into recession. The average joe has been beaten down with the housing recession, home prices have tumbled, consumer confidence is very low, spending this holiday season looks to be low. IF the Stock Market TANKS from here what would that do for the outlook on the U.S. economy???? Consumer confidence????? The avg Joe has seen their home price decline. If the avg Joe sees their Stock portfolio tank, their 401K tank, what would that do for the U.S. economy going forward 6-24 months?Consumer confidence.
Ummmmmm.... generally when there is the possibility of a recession( as we are teetering on and most economists feel there is a strong possibility of) the appropriate Fed action is to lower rates NOT raise them. Hello