Dear Zeev - knowing how much I respect your opinion, somehow I'd argue that the move yesterday was not necessarily seen as an abrupted change from the port to the starboard <G>. If the Fed were to be abrupt, it would dough out 50 basis point at the conclusion of last FOMC meeting. Rather, it has maintained its 25 basis point tradition; also, the timing now will leave it plenty of room to decide for the next FOMC meeting.
While our discussion has thus far revolved around the move yesterday, I would also like to add 2 big picture type considerations. The budget agreement yesterday [well, to the critics, it was late! But I guess better late than never <G>] has left the surplus relatively intact [sans $20B] and the smallest increase of the COLA for SS next year
boston.com
may prove to be great stabilizing forces.
The key is that the Fed, knowingly or not, is trying to be the leader to overcome the global malaise. As the saying goes, "The buck stops here!" <VBG>
best, Bosco |
