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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Augustus Gloop who wrote (8222)9/7/2007 6:15:26 PM
From: Hawkmoon  Read Replies (3) of 33421
 
Even if we don't you could see Fed action of 25 basis points next week followed with another 25 on Sept 18.

I agree.. Fed may cut over the weekend, just prior to Monday's opening.

But definitely they will cut sometime next week. If they don't they will only create the very economic weakness they are supposedly trying to avoid.

I also find it interesting that both Larry Kudlow and Jim Cramer believe the USD will rally upon the Fed cutting rates. I think they are right. The Fed overly restrictive policies (Fed Funds exceeding the 10 year bond) has created the expectation that the economy is bound to weaken. Moving the FF closer to the 10 Year bond year will decrease that fear and the currency will rally.

Hawk
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