I wish I lived in a country where Wall Street did not set the interest rates. But sadly that does not seem to be the case. The best predictor for what the Fed will do seems to be what the markets want. This from Calculated Risk….

It’s now a tossup, based on market expectations, between a 50 bps rate cut and a 75 bps rate cut, on January 30th.

Just a couple of days ago, I heard a couple of analysts say that the Fed wouldn’t cut 75 bps because that would give the appearance that the Fed is panicking.

Wall Street is apparently saying “Bring on the panic”.