Rate Cut at the End of October?

Everyone’s trying to figure out whether or not Ben Bernanke will be announcing a rate cut at the end of October for the meeting on the 30th & 31st.

The verdict seems to be split down the middle with both sides bringing up excellent points.

Many believe that they will cut rates again because the housing market just keeps getting worse despite widespread forecasts that it would soon hit the bottom. This would be even more compromised if there is no rate cut and lenders once again tighten lending restrictions. This just as lender borrowings from the discount window have decreased. This shows that lenders are in less need of the immediate cash, and encourages investors to start investing on riskier markets.