Quote:
Originally Posted by Saratoga_Mike
That's for the next meeting (Sept). For Sept, there's a 42% chance of a 50 bps cut and a 58% chance of 25 bps (so 100% chance of a cut). My prior post was for the cumulative change by year-end.
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A 50 point cut would send a very interesting signal. Right now rates are around 5.25%. Historically, that is not all that low. Back in the early 60s my grandfather shopped around for a loan. He turned one down at 4.50% for one at 4.25%.
Martin Zweig used 8% as the dividing line between high and low rates. So there is still a lot of room for cuts.
