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Your guess: market reaction to Fed rate cut?
Montalvo
09-08-2007, 11:27 AM | Post #205980
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Following Friday's jobs report, it seems that virtually everyone's now forecasting a cut in the Fed Funds rate, either on the 18th or earlier and either 25 or 50 basis points. My question: How will the markets react to each of these four potential outcomes (i.e., 18th, earlier, 25 or 50 basis points)?
Will a pre-18th cut be read by investors that the Fed is acting decisively to prevent a recession, thereby causing equities to soar, or will it be seen as an indication that the crisis is more dire than we realized, thereby causing markets to tank? Same for 25 vs. 50 basis point cut.
Your thoughts?
Bob
Originally posted in thread: 2888
Topics
basis point
Equity
Federal Reserve
FOMC
Funds
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