A RATE CUT WILL DO NOTHING, STOP IT ALREADY..... There is no reason to cut rates, there was no reason to cut rates to 2% like they have, stop wishing for rate cuts, I know its probably the only catalyst left for the bulls but rate cuts ARE NOT going to bring back the bull market or economy so enough wishing and hoping for rate cuts.
I hope the ECB will hike on Thursday! We have to make sure the 'inflationary pressures' are finally taken care of!!!!!!!!!
Financial institutions will start to crumble and crumble fast now that the bill did not pass...the fed may view a cut as a way to allow those on the verge to put themselves in a bettter position NOT to fail....OR, we might see something done which has never been done in history in the next few days...It sure is interesting now. If large financial institutions start to announce they are cutting/suspending their dividends which I feel is a for sure, more downside selling pressure is coming..this might just be the beginning of a much more massive sell off... I do think the selloff in oil is a fakeout and it goes much much higher in the 4th quarter! Money coming out of the market has to go somewhere and only a portion of it will go to gold so oil to me is the natural one to increase rather quickly.
The federal reserve already injected 600 billion this morning. They're not going to cut. There's no need.
bloomberg reports congress will only come back to vote on thrusday, this could affect the feds decision if markets crash waiting for it
I'm not sure, with the libor rate being sky high, that the fed can actually promise a rate cut....they do have to provide liquidity, and there is none in the system....who would lend to the us bank if the fed cut rates? Luckily, the dollar has held up. Personally, I would like to see 50bp...even 75 but could this not choke off some struggling institutions? since the us is so heavily indebted....and the european rates are so much higher? Perhaps what would help, is if some of the european banks cut their rates.