Bryan Flynn's Central Massachusetts Mortgage Blog

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Fed Predictions, just for the heck of it

The Fed meets today and is coming out with rate cuts at approx. 2:15pm EST.  I would like to hear everyone's opinion / guess as to what they think the Fed will do today in terms of cutting of the Fed Funds Rate which sits at currently at 3%.  Wall Street, well the futures market, is predicting a full percentage point cut down to 2%, however the Fed was very busying this past week or so bailing out Bear Stearns by providing liquidity and backing some of their debt so JP Morgan could come in and takeover Bear Stearns for a whopping $2 a share, great deal if you ask me.  Some pros say they won't cut the full point now and save some because of this recent activity.

 Anway my opinion is they cut .75% although I would rather see just a .50% cut.

 What does everyone else think?

 

 

Comment balloon 3 commentsBryan Flynn • March 18 2008 05:54AM

Comments

In my opinion any thing less than a full point Will send the stock market down; which is good for bonds.  They have already priced into the market a full 1%.  Anything less would send traders in to a sell mode.  My stock portfolio says i want a full point put for clients i agree with Brian i want a .50
Posted by Christopher Hills, Managing Dir. Lending over 10 years ago
I am not sold that the mortgage bonds will rally though if we have less than a full point cut though, maybe for the short term, but with the gains the bonds had yesterday, I see a pull back.....less of one if we have a .75 or .50 cut...but it is all in their statement and inflation talk.
Posted by Bryan Flynn, Central Mass and Worcester Mortgages (Regency Mortgage Corporation) over 10 years ago
I think they are sticking with .50 today. We will see what happens to the market when they make a change and go from there.
Posted by Patrick Johnson (Windermere) over 10 years ago

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