Bernanke-Panky

The Fed meeting is today again, with market watchers eyeing whether rates will be cut by a quarter or a half point (0.25 or 0.5%). November job growth slowed (pointing to a larger reduction in rates), as shown by Friday's report, yet still exceeded forecasts (pointing to a smaller reduction in rates).

Since the Fed gets to decide on both the Fed Funds rate - the rate at which banks borrow funds from each other - as well as the discount rate - the rate at which banks borrow funding from the Fed - it's possible we witness a quarter point reduction in one and a half point reduction in the other.

Stay tuned...