American, I see many expecting a rate cut before the 21st of March, I am not sure what creates these expectations, right now, I see AG back pedaling fast on his "now growth" comments earlier this month. With tax receipts running in January at 7.5% above last January, with the PPI blipping up, with employment figures not showing major deterioration, where will the impetus come from? The market are not far (the Dow actually is higher) from their levels when AG coined the famous "irrational exuberance" sound byte, the economy, IMHO, is not on the verge of a real recession, and thus there is no urgency, unless a financial accident occurs before the 21st. You will be disappointed if you count on two rate cuts in the next 30 days, IMTO.
Zeev |
