The FED will not cut rates for at least 2 more years

Discussion in 'Economics' started by Joab, May 17, 2007.

  1. Joab


    Who ever started this rumour is a genius because it ain't going to happen.

    I have NEVER seen the FED cut rates during the fifth phase of a business cycle (Expansion, 90% of economists consensus).

    Some days I really feel like I'm back in grade school when it comes to these kinds of silly games (that fill this job as a trader) did we ever really grow up.? :cool:
  2. you're so mature
  3. I know you are but what am I?

  4. The Fed never tightened during an election year, until they did in 2004.
  5. S2007S


    No need for a rate cut anytime soon, every morning I tune into cnbc the same question they ask everyone is, do you see a rate cut anytime soon, most say yes. I dont think there will be a rate cut till end of 2007 early 2008. There is no need for a rate cut. From what I hear the economy is doing just perfect with rates at 5.25%.
  6. after claims this morning, May payroll estimates are coming in. Lehman 175K, 2X April, well above the 100K the Fed considers the break -even level.
  7. S2007S


    They think rates are going down, you think we have inflatio now, if they start cutting now, inflation will only get out of hand, especially with a strong job market.
  8. Its a gimmick to keep traders from shorting, just plant that thought.

    It makes for an environment were the bulls can have their cake and eat it too.

    If the economic data is weak, they cheer " fed rate cut on the way" rally rally

    If the data is strong they cheer " the economy is strong growth is good, stocks are cheep" rally rally.

    Its hopeless for the bears at this point, bear markets are short, bull markets are long.

    Just buy the dips and make $$$$$$$$