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Watch What the Fed Watches: Stock Market Rise but Banks Still Concerned About Default Risk
Wednesday, 10 October 2007 20:00:16 GMT  |  Antonio Sousa and David Rodriguez, Currency Analysts
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Despite the recent improvement on financial conditions, the outlook on the credit market remains bearish and the Federal Reserve may cut interest rates on October 31st to prevent problems in both the housing and banking sector from damaging the broader economy. On the other hand, the Federal Reserve may use the recent strength of the stock market to keep Interest Rates on hold. Click here to join DailyFX Analysts in discussing the latest developments.

  • The Federal Reserve May Use the Recent Strength of the Stock Market to Keep Interest Rates on Hold
  • Difficulty in obtaining lending is likely continue as banks remain concerned about credit default risk
  • Mortgage Applications gains reflect tightened underwriting standards and not a true increase in demand for lending

 

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Written by Antonio Sousa and David Rodriguez, Currency Analysts for DailyFX.com

 

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