Feb 21
Market sure of another 50 bp cut
Cheaper credit will not solve all the underlying problems of the US economy (actually it may breed as many), but markets like low interest rates. Unsurprisingly then, they reacted with a lot of optimism to the latest Fed’s minutes confirming that a decisive action on the monetary front is needed – even if it will be soon reversed. At this moment, another 50 bp cut on the next meeting (March 18th) looks more than certain, leaving the target rate at a mere 2,5%. Consequently, stock markets moved