Some speculation of possible Fed emergency rate cut tomorrow at its FOMC meeting, with decision at 1815GMT, from 2.00% to 1.75%, but FORECAST sees Fed keeping Fed Funds unchanged at 2.00% (See latest write-up on Fed (FOMC) by Ray Attrill after Lehman/ AIG news). Some focus on new Fed measures. WSJ: The Fed is expected to expand its lending facilities in the wake of the demise of Lehman Brothers, taking a wider array of securities, including equities, as collateral for its loans. The moves, which potentially represent another landmark step in the Fed efforts to address the deepening credit crisis, are expected to be temporary. They are meant to calm markets as they head into one of the most perilous trading environments in decades with Lehman's massive market positions on the verge of being unwound.
