The FOMC cut the FFR% by 25 bp to 2.0%. This was probably the
consensus. The statement should be read as a shift of FOMC to a
more balanced assessment of economic growth potential vs.
inflation potential. The door has hardly been closed on further rate
cuts, but the "tilt" toward a more neutral policy is unmistakable, as
is the implication of the heavy weight to be placed on"reading"
incoming economic data and monitoring the standing of a still stressed
For more, read yesterday's entry immediately below.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!