Rate Cut!

Discussion in 'Trading' started by exce26, Sep 17, 2001.

  1. exce26


    the Fed has just moved to cut both the Fed Funds rate and the Discount rate by 50 bp. The new rates are 3.0% for the Fed Funds with 2.5% the new Discount rate. The action indicates that the Fed is confident that a sudden reacceleration in the economy is no longer a threat, and another rate cut at the meeting on Oct 2 is possible
    The opening is expected to be very volatile with a wide range of calls for how the averages will perform in the early going
    There also have been a number of companies announcing stock buyback programs or extending current plans (SBUX, FDC, IVGN, BEAS, SANM, SGR, INTC). The SEC is also doing its part; according to the WSJ the SEC has waived a list of rules in an attempt to encourage buying at the open