Still no Fed rate cut...

The Federal Reserve has had plenty of opportunity to cut its target rate over the past two weeks, but has failed to do so. That fact, coupled with a couple of more bailout moves by the Fed yesterday and today, as well as the failure of banks to fully subscribe to the lastest TAF auction, lead me to believe that the Fed is unlikely to cut their fed funds target rate over the next couple of weeks unless the economy really does fall off a cliff. Despite anxiety about the economy (partially fueled by a contentious presidential election campaign), the economy actually is still hanging tough. And this is even with the severe economic distress caused by Hurricane Ike. I suspect that the Fed feels that there is plenty of stimulus on the way, even before the $700 billion bailout starts to kick in in a couple of weeks.

Of course, in times like these, anything goes, so be prepared for just about anything.

-- Jack Krupansky