In the hours before the stock market opened last Monday (August 5) the S&P 500 futures were down 250 points and there were vocal calls for the FOMC to lower the Funds rate immediately since the ‘sky was falling’. If the FOMC didn’t lower the Funds rate immediately it should lower it by 0.50% or more at the September 18 meeting!
Since a large part of the weakness on August 5 was due to the -12% decline in the Japanese stock market, real relief was more likely to come from the Bank of Japan than the FOMC as I noted last week. “ If the rally in the Yen slows or the Yen drops in...
