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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: SwingTrader2006 who wrote (6809)	10/30/2007 4:54:40 PM
From: jim_p	Read Replies (4) \| Respond to of 50220

The problem the Fed has with a rate cut is inflation is running higher in other countries (more like other countries are more honest in the way it's reported) and they have more pressure to raise rates then we do. If we cut and they raise we have a very serious problem with the USD. Inflation in Australia is at a 16 year high, and the trend is for higher inflation in both India, China and other developing countries. India just increased its reserve requirements this week to try to slow the economy. I'd give a 30-35% chance the fed holds rates steady tomorrow. If they lower rates they will most likely have to raise them back up soon, unless the housing bubble gets so bad that we end up in a deflationary spiral down. Markets tank if the fed holds steady. If they raise they will make some comment about their concerns on inflation which will also be bad for the market. Anyone know what fed funds did today? I'm betting on a down day tomorrow. Jim