Not “entirely dictated by market expectations’”?
The Federal Open Market Committee (FOMC) cut the federal funds rate by 75 basis points today, on continuing concerns that the US economy is going down the tubes fast. With inflation on the rise, the dollar on the slide, and more and more jobs simply ceasing to exist, it’s hard to argue.
According to the BBC, the Bank of New York is quoted as saying that “By cutting 75 points rather than 100 points, the Fed sought to restore leadership over the market and indicate that its actions would not be entirely dictated by market expectations.”
How exactly is this not giving in to “market expectations” entirely? Its as if the Fed said to the (stock) market: “Okay. We’ll bake you a cake. We’ll ice the cake for you. We’ll even put candles on the cake. But you better believe we’re not going to light the candles for you. You can’t tell us what to do.”
From [BBC NEWS | Business | Federal Reserve slashes US rates]
