Tuesday, Nov 20, 2007

It would be hard to imagine a worse moment for the Federal Reserve and the market to collide over an interest rate cut

ft.com: Fed and markets squaring up for rate-cut showdown

It would be hard to imagine a worse moment for the Federal Reserve and the market to collide over an interest rate cut that the market wants and expects, but the US central bank is not prepared to deliver. Yet the risks of such a collision appear to be increasing by the day.

Peter Hooper, chief economist at Deutsche Bank Securities, says the Fed and the markets are locked in an "increasingly rigid standoff" over the likelihood of an interest rate cut at the next Fed policy meeting in December.

Posted by chris @ 06:07 AM (144 views) Add Comment

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