April 30th, 2008 (Modified on March 6th, 2009)
| Posted in Uncategorized
by Tim Manni
Market expectations for the finale of today’s Federal Open Market Committee meeting are that the Federal Funds rate will be cut by 0.25%, lowering it to 2%. The question on everyone’s mind remains: “Will this be the last rate cut of the cycle?” If the result of today’s meeting is different from market expectations, the economic effect could be damaging. The market must be given a chance to prepare for Fed activity.
HSH Vice President Keith Gumbinger believes, “Absent a tremendous new emergency the Fed is done cutting rates. However, within the past six months we’ve had several emergencies, so there remains a chance that rates could be lowered yet.”
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