I'm looking for someone to correct me here, since I'm not too sure of my facts, but I think that -
The current Fed rate is 1.5% , so that's all they've got to play with.
This time they'll cut it by 0.5%, to reduce it to 1.0%.
Yet 1.0% is then all they'll have left to play with.
And what happens after tonight?
Do they take it down to 0% like Japan did years ago? That didn't work for Japan (who are savers!)
A cut tonight for the US will make no difference to anything but the immediate short term. In fact it might go to point out how ineffective the Fed now is in addressing the mess they've caused.
Luckily our Reserve Bank took took rates up, so there's more room for rate movements to be utilised here.
