``My biggest concern has been and continues to be that the real economy is going into the doldrums,'' said Thomas Girard, a money manager who helps oversee $110 billion in fixed income assets at New York Life Investment Management in New York. ``That ultimately leads the Federal Reserve to lower rates, maybe over the next six months by 100 basis points, and if that is the case Treasury yields will decline.''
"Goldman Sachs economists predicted on Oct. 3 the Fed may lower its target by 1 percentage point in coming months. The firm previously expected policy makers to keep rates unchanged."
Here are charts from barchart.com that show the Fed Fund Futures Chart, Options and Curve. It should be noted that the Call/Put Premium Ratio is 63.50..
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I know they will do anything they can not to lower rates. Could the rally at the end of today be buying ahead of the fed meeting? I think so.
Australia cuts interest rate 1 percentage point
"Australia's central bank cut its official interest rate by a bigger-than-expected 1 percentage point Tuesday to ease credit concerns amid a global financial turmoil, cheering investors around the region."
http://www.iht.com/articles/ap/2008/10/07/business/AS-Australia-Interest-Rates.php
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Analysts back coordinated rate cut
With no let-up in market turmoil in sight, analysts say a coordinated interest rate cut by the European Central Bank, the Bank of England and the U.S. Federal Reserve is becoming more and more likely as a way to help revive lending between the world's banks.
http://www.iht.com/articles/ap/2008/10/06/business/EU-Interest-Rates.php
-International Herald Tribune
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