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Follow on Google News | First Prime Group Believe Fed May Cut Rates.First Prime Group on speculation Fed may cut rates to restore confidence.
By: Richard Drakec The record near-800 point drop in the DJIA following US Congressâ rejection of the bailout package has galvanized opinion among market traders that the Federal Reserve may ease interest rates in an effort to reassure markets. First Prime Group sources believe that if a rate cut is on the cards, it will come during the next few days rather than at the next FOMC meeting in October. Confidence in the financial system has reached an all-time low and, according to the First Prime Group source, there is a growing possibility that foreign US Treasury bondholders may begin to sell their holdings. First Prime Group have largely avoided treasuries preferring the safety of commodity stocks and ETFs. End
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