Paraphrased from Schaeffer's Opening View, December 4, 2007
Wall Street's action is being foreshadowed by next week's FOMC meeting. The Fed's announcement on Dec. 11th will move the markets and impact the housing markets.
San Francisco Federal Reserve President Janet Yellen on Monday night became the third official from the bank to hint at another interest rate cut. It seems that financial woes are hardly over for our friends overseas, with credit crunch tensions in Europe virtually palpable.
Did someone say "interest rate cut?" After the market close on Monday, the aforementioned Fed official said that, since the big bank's last meeting, the economy had slowed down more than she expected. The unusually chatty Federal Open Market Committee is expected to meet and make their decision on December 11.
And, speaking of rate cuts, The Bank of Canada today will decide whether to cut interest rates of their own. The Canadians are currently at a 4.5% rate, but economists say it may be too close to call on whether the maple leaf-toters will make the cut. Central banks in the U.K. and Australia are slated to make rate-cut decisions of their own later this week.
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