|
|
|
Big Fed rate cut may spur a rally Kristina Cooke A big interest-rate cut by the Federal Reserve next week, or at least a hint more cuts are coming, coupled with this week's subprime rescue plan could lift investor confidence and inspire a pre-Christmas rally. While most investors are banking on a cut of at least a quarter percentage point in the benchmark fed funds rate, many think a deeper reduction is needed to unfreeze credit markets and boost confidence. On Thursday, President George W. Bush announced a plan to stem U.S. home foreclosures, sending stocks surging on optimism it would keep the economy from sliding into a recession. "The big focus next week is the Fed meeting," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey.
(Article continues below) He said that while the market was pricing in an interest- rate cut, there was still speculation about how big such a cut would be and whether the Fed also would cut the discount rate. "Also if the comments reflect an easing bias, then together with positive momentum on the subprime plan, that should give a good support to equities," he said.
|
|
|
| PRISON
PLANET.com Copyright © 2002-2007 Alex Jones
All rights reserved.
|
Yahoo! MyWeb
