Question Of The Week: 25 or 50?


“Now the bets are turning to that they will cut 50 basis points, instead of 25 basis points.  If we get really bad economic figures, it might not be a bad bet.”

Steve Van Order (subscription required), Fixed Income Strategist, Calvert Asset Management

The focus this week is: Will the Fed cut 25 or 50? 

Up until last week the question was if they’d pause or cut 25.  But now that we know Uncle Ben is “nimble” and “flexible”, markets have increased the stakes.

After last week’s rally, a 25 basis point cut seems in stocks already so we’ll likely need a 50 point cut or at least a shift in the policy bias towards more cuts to move higher.

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