Fed Cuts 75 Bps, ECB Stays Silent (For Now)
Submitted by lucas20 on Tue, 01/22/2008 - 13:31.
The Federal Reserve has just cut interest rates 75 basis points. The Fed has not cut interest rates 0.75% since November 15, 1994. The European Central Bank is yet to move and remains silent on the cut. Futures bounce off lows, but remain beat down. Bill Poole wanted to hold off.
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History of rate cuts...
According to economist David Rosenburg when the Fed makes an emergency move such as this they usually make additional cuts at the next scheduled meeting. I believe the Fed looks pretty wishy washy by doing making this emergency cut. Just three weeks ago they said there were going to be completely open with the markets now they are doing the 'shock and ah thing'? Now the market is looking for an additional 50 beeper on Jan. 30th. First the Fed was behind the curve, now they are trying to get ahead of the curve? Can someone please explain to Bern-wanker that the bond market priced many more cuts because they are living in the real world in which they know how tight credit really is. The 2 yr note is yielding 2.00% which in my mind means the Fed is 150 beepers from being even close to ahead of the curve. But then again I am just a some youngin' making shit money in the real world and not an economist like Mr. Bern-wanker!