Thats the question participants of financial markets are confused with. The possibility of Fed cutting its target Fed funds rate emerged after Fed unexpectedly slashed down its discount window rates by 50 bps a couple of weeks back. The Fed's FOMC will meet in two weeks time to decide on its new monetary policy.
As per market enthusiasts the reduction is quite certain, as is evident from Fed funds futures prices which have taken into account a full 25 bps cut by september and a 75 bps cut by Dec'07.
However it seems that Fed's Bernanke is in no hurry to act. Last week he had told reporters that he will take every possible measure to calm down the credit crunch situation in markets. the current market turmoil has even forced Presidtn Bush to come up with certain policy changes to extend help to troubled homeowners.
In crude sector the focus seems to be now on Storm Felix after Storm Dean had missed key refinery locations in Gulf of Mexico in US coast. Though Met department has already predicted that the storm is set to miss US refineries in the gulf of Mexico, still crude futures were seen to be puuting up some gain.
As per market enthusiasts the reduction is quite certain, as is evident from Fed funds futures prices which have taken into account a full 25 bps cut by september and a 75 bps cut by Dec'07.
However it seems that Fed's Bernanke is in no hurry to act. Last week he had told reporters that he will take every possible measure to calm down the credit crunch situation in markets. the current market turmoil has even forced Presidtn Bush to come up with certain policy changes to extend help to troubled homeowners.
In crude sector the focus seems to be now on Storm Felix after Storm Dean had missed key refinery locations in Gulf of Mexico in US coast. Though Met department has already predicted that the storm is set to miss US refineries in the gulf of Mexico, still crude futures were seen to be puuting up some gain.
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