June 29, 2004

MAKE THAT "DECISIVE MISSTEP" (via John Resnick):

Fed to take decisive step Wednesday (Rex Nutting, 6/29/04, CBS.MarketWatch.com)

The Federal Reserve will almost certainly raise its overnight interest rate target for the first time in four years when the U.S. central bankers conclude their two-day meeting on Wednesday.

Oil Falls to 2-Month Low on Iraq Optimism (Reuters, June 29, 2004)
Oil prices fell to their lowest in two months on Tuesday as the handover of power in Iraq raised hopes for less sabotage and steadier exports.

U.S. light crude settled 1.6 percent, or 58 cents, lower at $35.66 a barrel.

Growing U.S. commercial supplies and higher OPEC output have eased fears about summer gasoline shortages and knocked about $6 a barrel off the price of oil since record New York futures highs at the start of June.


You can set your watch by them: by the time the Fed changes its bias they should be doing the opposite.

Posted by Orrin Judd at June 29, 2004 6:31 PM
Comments

At this point, the Fed will likely be merely confirming what the market has already priced in. But it'll give talking heads something to yammer about til Friday at least.

Posted by: John Resnick at June 29, 2004 6:52 PM

Ah, the terror of the teensy-weensy quarter basis point.

Posted by: jim hamlen at June 30, 2004 1:50 PM
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