SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : The Microcap Kitchen: Stocks 5¢ to $5
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: GARY P GROBBEL who wrote (72737)3/13/2008 11:11:29 AM
From: Rarebird  Read Replies (3) of 120413
 
<< the FED should probably stand pat on rates now....just won't help at present.>>

The market expects at least a 50 basis point cut and the Fed is a political animal. I think that if they stood pat and said that further rate cuts at this time are not the proper action to take, it would instill some discipline into the markets about the Fed's resolve to fix the credit market problems and not trigger an inflation spiral.

When all is said and done, the Fed is likely to toss the market a bone of a 25 or 50 basis point cut. The markets probably need a shocker here to turn, though. The problem with a rate cut now is that it means the Fed will have to take it back next year (or, possibly late this year). That could cause problems for the recovery.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News