Gerald

Is the Market Misreading the Fed?

Could Bernanke be skillful enough to cut the discount rate by 25bps instead of the fed fund rate? This would confuse the financial markets in an amusing way: he would be meeting the market half way so to speak. It would bring rate relief to those with mortgages yet it would force the banks to continue to be responsible for proper credit assessment. We will be in suspense until this afternoon.