Waiting on the Fed...

Next week (Sept 18) we have a Fed meeting and after the Dismal employment report most of the market is expecting a cut in rates. I guess the question is how big of a cut 25 or 50 bp. I have been expecting a 25bp cut. It seems to go along with the current Fed's plodding approach to the market. It also gives them latitude. Remember although we have had a steady slowing (based on the economic numbers) in the states, except for the employment report, the numbers have not been terrible.

This morning coming to work I read a few large banks predictions on the Fed Funds rate and surprisingly (to me) there were a few calling for 50bp. Maybe I am missing the boat here but I think it might be to soon to make such a drastic move. I think you need to keep a few bullets in your gun and bny doing 25bp now it allows you that opportunity.


Good Luck and Good Forex Trading......