Fed Actionby alphadawgg on April 29th, 2008 at 1:32 pm |
Lots of talk about the Fed meeting today for their two-day session. The interest rate decision will be coming tomorrow at 2:15 ET. As you already know, it is widely expected that we will see a 25 bps rate cut, bringing Fed Funds down to 2.00%. That adds up to a 3.25% cumulative rate cut since September.
Expect this to be the last cut. The next move by the Fed will be a rate increase, perhaps by December, if the economy shows signs of recovering.
If for some unknown reason you have been buying bonds for their low yields, now might be a good time to start moving out before the exit doors get crowded.
Some are speculating we may see a low of 1.5% when the fed is finally done…Remember large banks are still not lending to the small regional banks.
That in itself could cause some bankruptcies.
Take NCC for example. They got lucky with the $7 bil.
By the way C out with a secondary…more dilution.
April 29th, 2008 at 10:23 pmIf we go to 1.50%, oil will print $150. Oh, the poor greenback.
April 29th, 2008 at 10:25 pmI think oil will eventually print $150…I was surprised of its recent run. If global growth is not stunted by recent inflation then it may happen sooner than we think.
April 29th, 2008 at 10:46 pmGas will be at $5. I wonder if that is the “uncle point” for Joey-Bag-O-Donuts, causing him to reluctantly car pool with Joe Lunchbucket.
April 29th, 2008 at 10:52 pmTSO has got to be blinking on so many radars right now, both frosted and glazed.
April 29th, 2008 at 11:46 pm$5 would cause car pooling… 15 years ago people were only willing to travel 20 minutes to work. With the housing boom came vast groups of people willing to travel over 45 minutes.
April 29th, 2008 at 11:57 pm