Rate Cut To Happen Today: Investor Confidence Is Strong, Market Is Up

Tuesday, October 28th was a big day for Wall Street. The Dow jumped 889 points and retook 9000, and yet it was only the second biggest one-day jump this month. It’s been a bizarre and volatile October. But the market wasn’t as volatile today as it had been lately, so far Wall Street has extended yesterday’s huge gains since investors are growing more optimistic that an expected interest rate cut will help the economy toward recovery. I’m glad some people are optimistic, because I’m certainly not.

It’s not that I don’t think the Fed will cut rates, I think they will. But it’s already at 1.5% and it’s expected that they’ll lower them a further half a point, maybe even three quarters of a point. I just think that’s the wrong move, since artificially low interest rates are what got us in this mess in the first place. What if interest rates actually go below 1%? That’s insanity, and it doesn’t bode well for the economic future of this country. Either way, the decision should come out any minute now, so we’ll see what happens then. Commentary to come.