Don't you think with oil above 100 and food prices surging the panic button might be raising rates not lowering them?
The Fed HATES raising rates. I repeat, they HATE raising rates. If we had the past 2 Fed chairmen during the 1970s and 1980s, inflation would be at 30% right now.
For being "on the bulls side" his rate cuts, even the suprise one, have not had any real impact on the market, we are lower now than when they started to lower rates. The rate cuts are part of the problem, not the solution at this point. Never the less, they probably will continue to cut rates, down to 2.5 or 3%, and it wont matter. Brandon
that's right. they hate to raise rates so they will raise them only when they panic. So obviously panic button is rasing rates
The Fed could give a rats a$$ about inflation. Its all lip service. If they actually cared about inflation and a falling dollar, you think we would be 1.47 with the euro and have commodities rocketing every day? Get a clue. The Fed since the 1970s have been inflationists.
Eventually rate cuts will make the stock market go down...and the Bernanke put will expire deep in the money... Rate cuts are not good things...especially intermeeting cuts...
Sure they matter. a fed fund rates at 2.5% would stimulate all areas of the economy, that too is a function of time. It doesn't happen overnight. Rate cuts take 6 months to start to kick in. Let's see, they started in Aug.. There has never been a period in history where an easing fed has not led to clear expansion some 12-18 months later.