quote:Originally posted by Bottomfeeder: I think that they will cut another .50% and they will do the same each time they meet this year. I expect interest rates to be close to 2.5% by years end.Too bad it is an election year.
the fed funds rate is already at 3.5 after the 3/4 pt cut yesterday. they meet 8 times this year so they can't cut .50 every time.
Posts: 1045 | From: novato,ca,usa | Registered: Aug 2003
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"But the markets want more drastic action by the Fed. The Chicago Board of Trade's fed fund futures are pricing in a 30% chance of a quarter-point cut this month, when the Fed isn't even scheduled to meet.
Those futures are also pricing in a 100% chance of a quarter-point cut in March, and a 28% chance of a half-point cut during the month, up from virtually no chance of a half-point cut ahead of Tuesday's ISM report."