25, 50, 75? 350? Tune in at 2:15pm
The big question isn't will he, or won't he. The big question is how much?
How much will you cut tomorrow Mr. Bernanke? How important is it to you to preserve asset prices at the same time as you crush the dollar? Tomorrow we'll find out.
The market has its bets placed on 50 basis points:
The threat of cascading stock and home values and a weakening labor market will spur the Fed to cut its benchmark rate by half a percentage point tomorrow, traders and economists forecast. That would bring the rate to 3 percent, approaching one measure of price increases monitored by the Fed.
Personally, I'm betting he'll do 25. Yes, I know it's crazy to bet against the money printing instincts of this Federal Reserve, but I've got to go with my gut on this one.
I think deep down inside, Bernanke does care about inflation and the dollar. The stock market has had a very nice rebound since last Monday, and Wall Street can afford a little more pain... and I'm not sure Bernanke wants to look like he lets Jim Cramer set Fed Policy.
