Obviously the market has priced in a .25 cut. And the most important aspect will be the language with which the fed hints at further actions (or lack thereof) regarding future fed decisions. What do people think will happen after the fed decision?? If they cut .25 or don't cut at all??
I think that if they cut a quarter point there will be a 400 point runup over the next few days, just based on irrational exhuberance that they contained the subprime mess a little more, if they don't, not much will happen... and I won't be acting on what I think btw, forget what I think, I trade the screen, whatever the market is thinking, that is what I want to be thinking.....
2.0% gain on all indexes, I reckon. Market cried like a little baby and got what it wanted from the cock sucker fed. Big draw down then last hour surge because it's over from here. No need to take the market down to get what they want anymore.
Only Plosser and Fisher get it. The rest are a barrel of monkies. and Aaron, why don't you take a day off or something? You're beginning to really get annoying.
Their comments on inflation "require a willing suspension of disbelief" Inflation is moderating? Geeeessshh
Seriously. I wonder what planet these guys live on. The statement couldn't be more enigmatic if they tried. I thought they wanted to promote clarity in the Fed thinking? How is this supposed to make the Fed more transparent?
They are only lying Arnie, nothing new about that. What they are really saying is that the job of reloading the banks balance sheets remains a priority until all the bad paper, YET to be presented is washed off the books and into the arms of the US tax payer who is already trying to come to grips with inflation. regards f9