Expected interest rate cut may have negative effect on Stock Market
The expected interest rate cut in a few weeks may not have the required effect according to some analysts in this Reuters story on Forbes.com:
The decision-making Federal Open Market Committee meets in three weeks to set policy, and comments earlier this week by Fed Chairman Alan Greenspan signaled the FOMC may decide to cut rates to offset falling prices.
...Analysts, however, say that at best, a rate cut might have zero effect on the market and, at worst, could be deleterious to recent gains.
"It will be extremely disappointing to the market for the simple reason that the recent strength across the board had been derived from acknowledgment that the economy is starting to get some traction," said Ned Riley, chief investment strategist at State Street Global Advisors, which manages $110 billion.