http://online.wsj.com/article/SB119522097003695721.html?mod=hps_us_whats_news Rate Cuts Not Likely to Continue By Brian Blackstone A Federal Reserve official sent one of the clearest signals yet the central bank isn't inclined to cut rates further, even when stocks sink and economic data turn sour. "The current stance of monetary policy should help the economy get through the rough patch during the next year, with growth then likely to return to its longer-run sustainable rate," Fed Governor Randall Kroszner said in prepared remarks before the Institute of International Finance in New York. "The economy will probably go through a rough patch during which a number of economic-data releases may be downbeat," he said. But the weaker ...
I agree more cuts, all the FED talk is there to stop a massive collapse. But dollar will reverse when EURO and UK cuts rates. Maybe 2 more rate cuts, not sure. As the FED does not want to dissapoint, they need to talk much stronger so that the FED FUND FUTURES doesnt price in rate cut. So if there is intention is to stop the cuts, then the talk must be much stronger, to see futures reverse.
If you understand the Fed Policy, then you'd know the Fed cares little about where the Fed Funds rates are. In fact, they(rates) move to where they think the Fed will be. So what if they are pricing in another 25- 100 bps cut, they can take out a cut or hike in a matter of hours. Im put on the flatner this past week, bet against me if you are so sure of yourself. Ride the dragon!!!
So, A Federal Reserve official pops up and says that "the central bank isn't inclined to cut rates further, even when stocks sink and economic data turn sour!!!" But still some people here claim that Fed will cut rates. So how do you know, what's your basis for a cut rate? Or is it just because you want a cut? Damn, this guy is a Fed official, if he says that there will be no cut then there'll be no cut. This is it!
..."Rate Cuts Not Likely to Continue By Brian Blackstone ".. ..."Not likely"... Using wording like this in not a clear signal. If fed guy said, there will be no rate cut. Then thats clear. Otherwise its just spin, to place a few judder bars in way of the USD sinking to third world status. There is a difference between judder bars and a road block. So no road block yet.