Monday, January 14, 2008

Fed Funds Rate Cut: 50bps or 75bps?

by Calculated Risk on 1/14/2008 07:52:00 PM

Cleveland Fed Funds Market Expectations Click on graph for larger image.

Source: Cleveland Fed, Fed Funds Rate Predictions

It's now a tossup, based on market expectations, between a 50 bps rate cut and a 75 bps rate cut, on January 30th.

Just a couple of days ago, I heard a couple of analysts say that the Fed wouldn't cut 75 bps because that would give the appearance that the Fed is panicking.

Wall Street is apparently saying "Bring on the panic".