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Friday, August 03, 2007

Should the Fed cut rates on Tuesday?

by Calculated Risk on 8/03/2007 09:17:00 PM

Our first poll: It is very unlikely that the Fed will cut rates on Tuesday, but should they?

Here are the current Fed Funds Rate Predictions from the Cleveland Fed.

Some economists are suggesting the Fed will move to a neutral bias on Tuesday, from their current view:

"... the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected."
Perhaps some people would like to use the comments here to discuss the merits of a Fed rate cut.