Anthony Crescenzi
Anthony Crescenzi
basis both cut discount fed percent points rate
The Fed will probably cut the both the Fed-Funds rate and the discount rate by 25 basis points tomorrow, to 5.25 percent and 4.75 percent, respectively.
bet buying closer continue cut dearth fewer host larger meeting people point speculate
The Fed's about to cut rates, and they may cut more from a dearth of sellers than from a host of new buyers. Some people continue to make their bet on the possibility of a 50-basis point move. You see people buying to speculate on a larger cut...you're going to get closer to that meeting and you're going to find fewer sellers.
course cut fed might rates rumors
There were rumors that the Fed might cut rates today, but of course they did nothing.
book cutting given late might news rates reflected report weak
Given that some of the news of late ... has been on the weak side, and given that the Fed's own Beige Book report reflected weakness, they might show an inclination to cutting rates in the future,
cut given market program
How in the world could he be unfriendly given that they just cut rates? He's got to keep on with the program -- which is to keep prodding the market to stabilize.
cut draw greenspan market morning quarter rate
The market has priced in a rate cut, of at least a quarter point, ... and this morning it was for a rate cut of .75 - and I think that is where Greenspan would draw the line.
barrel billion change consumer economy enormous gain impact influence oil per prices year
Each one-dollar change in oil prices has a $7 billion per year impact on consumer spending. So the gain in oil prices recently, from $25 a barrel to $37, is an enormous influence on the economy -- $84 billion, in other words.
bond expects fall hard market people stock trading
The bond market expects the stock market to fall very hard ... people are trading scared.
basis bonds gotten rally
The basis for a rally in bonds has gotten smaller.
except extent
not really much of a factor, except to the extent it's delaying the impeachment proceeding.
news
Again, another whipsaw day, ... What big news did we get today? ... Nothing.
additional causing create drop economy fed further higher hold interest pose raising rates remains risk stimulus vigor
The Fed will look at a cross-section of data, which still show that enough vigor in the economy remains to pose a risk for higher inflation, ... If the Fed were to hold off on raising rates on Tuesday, they would create additional stimulus for the economy by causing a further drop in other interest rates.
create history problem solve
The Fed's history has been that they solve one problem but create another,
accurate align fed hopefully inflation itself needs strong trend unless view
The Fed needs to align itself with the inflation expectations of the market, unless it has a strong -- and hopefully accurate -- view about how the inflation trend is evolving.