Most investors believe the Fed will lower rates by another quarter percentage point but will also suggest they are gearing up for a pause.There will be a Federal Reserve assessment on the economy issued this coming week maybe Tuesday or Wednesday.
In the past few months, these announcements have led to short term lifts in the stock market mostly because Wall Street likes seeing prime interest rates go down, at least right now.
I would suspect that day traders are gearing up for this announcement. If they cut the prime interest rates by another .25% then there will definitely be a market rise on that day.
The big 'but' though comes with any more mention of a pause - slow down in the economy. Personally I don't think the recession is close to being over. Watching the stock market carefully over the last 4 months I've noticed that it is now somewhat stable, but that stable point is low. I haven't seen the kind of drops that occurred back in January.
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