ICYMI – A snippet via the news wires overnight from Capital Economics:
Fed needs to do at least a verbal intervention to calm down financial marketsFedspeak might avoid an emergency rate cut”At this point it’s really about restoring market functioning–they could damp things down with a few well placed verbal interventions, it wouldn’t necessarily require inter-meeting cuts.”says interest rate cuts between meetings “can backfire if the market thinks the central bank knows more than they do”
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We did get some soothing remarks from Fed officials on Monday US time:
Fed’s Goolsbee: Jobs numbers are weaker but it’s not looking yet like a recessionFed’s Daly says minds are open to cutting rates in coming meetingsMore from Fed’s Daly – monitoring labour market indicators carefully
There are plenty more talking heads available if needed
This article was written by Eamonn Sheridan at www.forexlive.com.
