The money quote from Fed mouthpiece Ip in this morning's WSJ…

"…for policy makers, the decision is between the quarter-point reduction and no cut at all. A half-point cut is unlikely to get serious consideration from Fed officials…Ordinarily, meeting market expectations isn't a goal in itself for the Fed…"

…has drawn a universal <snort> <roll eyes> from the professional Fed-watching community.  With financial stability JobOne at the Eccles Building, November Fed Fund futures putting a 94% probability on a 25 bp cut, and America's highest profile broker fielding retail phone calls about its financial stability, the notion that the Fed is seriously thinking of not moving rates is just laughable.  In September, it was UK Northern Rock's bank run on page one that cemented the Fed's panic half-point cut. Think Bernanke will sit still with MER on the ropes? Neither do the currency traders.


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