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Strategies & Market Trends : The Amateur Traders Corner

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To: Kevin Podsiadlik who wrote (17121)12/9/2001 3:53:06 PM
From: Tom Hua  Read Replies (2) of 19633
 
Kevin, not at all inconsistent. No cut will be viewed positively by WS. It means the Fed feels the economy is at the onset of a recovery and that of course is bullish for equity. Zero cut will send markets roaring. Another rate cut simply says the economy is still declining and the timing of a recovery is anybody's guess. A 25 bp is 100% priced in, all 24 government bond dealers predict 25. There's not even a 1% chance that Greenspan will deliver anything but 25. It's cast in concrete, a done deal.

FOMC decision poll:

6 for 0 bp
13 for 25 bp
0 for 50 bp.

Regards,

Tom
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