To Cut or Not To Cut
UPDATE 2: On further reflection, I do not think this is a good sign. With the expectation of more aggressive fiscal policy, an aggressive rate cut like this one indicates that the Fed thinks the economy is in need of both aggressive fiscal and monetary policy to turn it around.
UPDATE: Well, the cut is in, and it's an aggressive 50 basis point cut. Wouldn't be surprised to see the market shoot up for the rest of the day.
That is the question in the aftermath of the Republican victory. Will the FOMC deliver the expected 25 basis point rate cut? Or will it decide that with a Republican-controlled Congress, fiscal policy will become more aggressive, so monetary policy does not need to be as aggressive? We'll find out in about a half-hour. Stay tuned.