Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| October 31, 2007 | | INSTANT VIEW from GFT Global Markets | This quaret-point rate cut, though widely anticipated, was far from guaranteed. Although this may look like a safe play from the Federal Reserve, it is a brave move to cut rates on a day when the price of oil is breaking record levels. The statement accompanying the decision acknowledges these inflationary pressures in the US economy and the markets will likely take this as a pointer inflationary concerns are back on the table. This may well be the last cut we see in US interest rates until well into 2008, if at all. | | |
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