Online Stock Trading | Don’t expect to see a FOMC rate cut

Don’t expect to see a FOMC rate cut


Filed Under Market Commentary |

Do not expect to see a cut in the Fed Funds rate any time in the near future. Liquidity is still the main culprit, an oversupply of money in the worlds market leading to pressure for inflation to rise.

05/30/2007 14:00 *DJ FOMC: Subprime Turmoil ‘Relatively Well Contained
05/30/2007 14:00 *DJ FOMC Minutes: Econ Growth To Pick Up This Year And Next
05/30/2007 14:00 *DJ FOMC: Core Inflation ‘Uncomfortably High,’ Must Come Down
05/30/2007 14:00 *DJ FOMC: Lower Dollar Could Put Pressure On Import Prices

A big possibility is slow growth and higher inflation rather than no growth and inflation. We’ll see a rate cut by years end if we continue on the path we are down. But, the FOMC will telegraph the move to avoid a HUGE shock to the market.

Aloha,
Market Speculator

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