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[Tor]

Is the US Fed going to cut the Fed Fund rate this year? From the Fed Fund 30-day future contract chart, it appears so. This contract has climbed rapidly since the end of July, at the onset of a correction in equity markets. But it has weakened somewhat over the last few days, finding support near the 200-day MA indicator (see right). However, yesterday’s event prompted investors to bet on a rate decline again, pushing it to 94.93, its highest level this year. It is likely to stay at this level as long as the market turmoil continues. In my mind at least if the fed does cut then they have lost all credibility given their comments on inflation busting.

Edited by Tor, 11 August 2007 - 10:41 AM.