What's the Fed Gonna Do Wednesday?

by: Barry Ritholtz

Okay, we know the FOMC ends their 2 day meeting Wednesday, and at 2:15pm, the announcement gets released.

What are they likely to do?

a) No cut at all -- 75 bps oughta hold the little bastards;

b) 1/4 point -- that makes 100bps in 8 days;

c) 50 bps -- oh yah, give it to me big boy!

4) 75 bps, just like last week -- daddy likes his sweet sweet junk -- Hmmm, thats the spot

And, what do they say:

a) The risk to the economy remains balanced between slowing growth and inflation;

b) Inflation? Trichet is mad! The risk is to growth;

c) Market turmoil is proof that the mechanical gears of finance are seizing up -- we gotta grease the cog wheels;

d) Run for your lives!

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