I Love the Smell of Rate Cuts in the Morning

Interest rate decision out of the FOMC today – Mr. Ben Bernanke and his busy policy‐ makers announce their latest decision on interest rates this afternoon in the US. Will Ben schmooze the media like Trichet? Doubtful. Estimates say rates will drop another 50 basis points, down to 0.50% from 1%.

Unless Benny B. decides to save some of what little ammo he’s got left for future FMOC get‐togethers, I expect the consensus estimate of 50 basis points off will prove accurate. But what will that do to the market?