A strong move by the Fed

As we mentioned in last night's posting, we thought it would be possible to hear from the Fed before the next FOMC meeting if the US EQ markets looked to be down significantly, and they did... The Fed's latest move should help reduce the risk of recession, stabilize the market, and prove the 2008 Fed is willing to take significant action, despite the rhetoric from some of its more hawkish members. In fact this was the strongest Fed cut since 1991 when they cut rates by 100bps. We will need to see how the markets digest this cut before we can make a call for additional cuts, but it is possible we could see the Fed cut again. However, given the magnitude of this cut it could come after the next scheduled meeting.