Fri 24 Oct 2008
US rate cut imminent
Posted by Prieur du Plessis under Investment, Markets, Money
Just a quick note to share a graph showing the US Fed funds target rate (red line), together with the actual effective rate (blue line). In my opinion, it will not come as a surprise to see the FOMC reducing rates by between 50 and 75 basis points very soon, possible still today. (The next scheduled FOMC meeting is on October 28 and 29.)
Source: Plexus Asset Management (based on data from I-Net Bridge)
It looks like another rough day, with the Japanese Nikkei 225 Average down by 9.6%, European markets down by between 6% and 8% and the Dow Jones Industrial Average future down by more than 6% at the time of writing.
We’re not through the rough patch yet. White knuckles and shaky knees …
Email
Digg
Del.icio.us
Technorati
Stumble
Reddit
Facebook
Email
Twitter
RSS reader
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
October 24th, 2008 at 4:42 pm
talk of large put seller in S&P this am, when can the mkts be up 2 days in a row?, its been a month. hedge funds cause of this weeks late fallout, time to buy post payroll data
October 25th, 2008 at 1:45 am
Looks to me as if the Fed is pushing on a string. What this will do is expand the TED spread with LIBOR. Do you think that will be an improvement? It doesn’t look to me as if interest rates are the problem. It has been proven that investors will sell stocks and buy Treasuries even at zero interest rates.