After the last meeting of the Fed, we were all pleasantly surprised to see that they'd dropped the Fed Funds rate half a percent. Based on the past actions of the Fed, I expected them to take it more cautiously and go for a 1/4 percent cut. However, the market is bearing out a need for the Fed to cut rates aggressively. And there's more room to go.
The next meeting of the Fed is at the end of this month. Spooky Halloween indeed! I think the question at this point is not WILL they cut rates again, but by HOW MUCH?
Wolfman says: "Things are getting hairy... they'll probably take another half percent"
Dracula agrees: "Yesss, they'd better go for the jugular!"
Madam Leota gazes into her crystal ball and says, "The future is cloudy, I'm not sure how far they will cut rates. A quarter percent may not be enough to change things going into the fall and holiday markets, but another half percent cut is more aggressive than they have been historically"
Well, there you have it kids... we know what we'd like to see, but it's anyone's guess what will actually happen. As for me, I'm predicting further cuts beyond just this next meeting.
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