DislikedI think Ben is a more Reactive person than a Proactive - which leads me to believe that he will only cut 25 bp - which may not be enough but will tell the market that he is doing something and keeps the hopes alive for further cuts. This could be bad for the market which is already pricing in 50 bp cut - but that will only be very short term - in the long term the markets will begin to stabilise with hopes of further rate cuts.
I would be very suprised if Ben cuts 50 bps.
If he doesnt cut anything - well .. its anyone's guess - market will be way too volatile and confused for me to even reason here.Ignored
And furthermore, one main criticism is that Greenspan acted on intuition and gut feeling, which the market loved. While Bernanke goes opinions, data, meetings, books, you know the usual B.S.
Since the disappoiting lecture in Berlin, Bernanke vanished, while Paulson poped out of nowhere with the same speech. Of course we cannot predict what Fed is going to do. But I do not believe in a cut.