Thanks For Being With Us (January 15, 2008 recap)
Dear Daveo,
FOMC meeting is 2 weeks from now, so Fed needs to be careful of surprise cut beforehand as they need to use their limited ammunition carefully and effectively.
A good time for them to do this would be on Friday, Options day and also the day BenDover testifies.
They still need to see the CPI data tomorrow and discuss before making the decision, so rate-cut is not probable tomorrow. It could happen, it's just not something I would say is 'likely'.
If market sells of aggressively Wed and Thurs, to the point of the panic/capitulation, then the chance of surprise cut on Fri goes up.
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1 comment:
FOMC meeting, what will taking about?
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