Fed to cuts rates today...rumour??

The market nerves are further strained by a vague rumour now circulating that the Federal Reserve may have to cut interest rates as soon as today. Such a move outside of the meeting of the scheduled interest rate committee, whilst not unprecedented, is certainly rare. The last such move was in January 2001 in the heat of the internet stock crash.

This is of course a highly unlikely move but the fact that such a rumour is circulating at all is significant. A cut in US rates in the September FOMC meeting is without doubt back on the cards.