There’s no telling how the market will react to the Fed’s rate decision and accompanying economic statement.
Anything less than a full-point cut could trigger frenetic selling, while anything more could rekindle the feeling that the credit markets and economy are in worse shape than Wall Street thought.
It’s nonsense like this that makes me wish the Fed would just let things fall as they should and stop trying to meddle with it.
Not enough of a cut will trigger “frenetic selling” and too much would be even worse???
How about no cut at all? Fake everyone out.
The quote above is from an article this earlier today by Madlen Read.