Today is “Rate Cut Wednesday” according to Forbes. Apparently, Forbes gets a heads up before the rest of us do: “The Federal Reserve will be in focus Wednesday, with its statement on monetary policy due at 2:00 p.m., ET.” I guess even the venerable Forbes is prone to Mercury retrograde. Or is that Forbes enjoys reading Wall Street Weather :-) where I wrote in my Stockmarket entry for today:
“Mostly positive. Market may peak around 2:00PM. Becomes more volatile towards the close. Mercury retrograde would give the FOMC the opportunity to do a rate reversal to atone for their impulsive actions on January 22. The SocGen situation left no doubt that the Fed considers propping up the stockmarket to be the key element of its growth mandate. (Never mind that inflation is growing at a faster clip.)”
John Authers, who writes the excellent “Short View” column in the Financial Times, sums up the current state of the markets since Mercury went retrograde Monday: “A rethink then prompted equities to rebound.” (Bolded emphasis mine).