Fed Rate Cut: Is it Imminent?

Just a quick note to share a graph showing the U.S. Fed funds target rate (red line), together with the actual rate (blue line). In my opinion, it will not come as a surprise to see the FOMC reducing rates by as much as 75 basis points very soon - possibly today.

click to enlarge

Source: Plexus Asset Management (based on data from I-Net Bridge)

It looks like another rough day, with the Japanese Nikkei 225 Average down by 9.6%, European markets down by between 6% and 8% and the Dow Jones Industrial Average future down by more than 6%, at the time of writing.

We’re not through the rough patch yet. White knuckles and shaky knees.

Comments

[Smarty_Pants:]

The important question is whether it will matter or not. The FED is giving money away left and right and it's not helping.

2008 Oct 24 11:35 AM