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Will we have another sell-off if Fed does not cut 0.5?

quote:

Despite a somewhat rosier tone in the market, traders are still anticipating that Fed Chairman Ben Bernanke will spearhead another cut, probably of 50 basis points, at the close of the FOMC's two-day meeting Wednesday.
"I think markets will paint [the Fed into] a corner," said Tom Higgins, chief economist at the Los Angeles-based investment firm Payden & Rygel. "If they don't cut again by 50 [basis points], you will see the market sell off, given what the expectations are today."

unquote

source: http://www.marketwatch.com/news/story/fed-funds-futures-pare-likelihood/story.aspx?guid=%7B65AE5528%2DFAAB%2D4E6F%2DAC5C%2D696176B75F5C%7D
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  • For those who are expecting the Fed will cut 0.5% at the end of this month, you may be disappointed.
    http://www.marketwatch.com/news/story/bernanke-didnt-know-about-socgens/story.aspx?guid=%7B90F882DE%2D44FF%2D4410%2D9B7D%2DF0AF348B284C%7D
    • FED lost its face this time. It has no longer strong reason to cut rates next week. But the market has priced in 50 basci point cut....
      • Will we have another sell-off if Fed does not cut 0.5?
        quote:

        Despite a somewhat rosier tone in the market, traders are still anticipating that Fed Chairman Ben Bernanke will spearhead another cut, probably of 50 basis points, at the close of the FOMC's two-day meeting Wednesday.
        "I think markets will paint [the Fed into] a corner," said Tom Higgins, chief economist at the Los Angeles-based investment firm Payden & Rygel. "If they don't cut again by 50 [basis points], you will see the market sell off, given what the expectations are today."

        unquote

        source: http://www.marketwatch.com/news/story/fed-funds-futures-pare-likelihood/story.aspx?guid=%7B65AE5528%2DFAAB%2D4E6F%2DAC5C%2D696176B75F5C%7D
        • currently, market opinions divide as this: 0.25 cut 28%, 0.5 cut 32%, 0.75 cut 30%, and now cut at all 10%
      • 如果是这样,下周看跌,还是多弄点现金在手比较放心
      • 我觉得和丢FACE 没有关系,只是CUT 会助长进一步通货膨胀,not cut MAY SET THE STOCK MARKET BACK AGAIN, I THINK THEY WILL STILL CUT AGAIN,.. QUICKER ACTION IS BETTER THAN LATE ACTION
        • "Odds that the policy-setting Federal Open Market Committee will lower its overnight lending rate to 3% from the current 3.5% dropped to as low as 58% Thursday before closing at 76%. "