“Pimco’s McCulley calls for Fed cut ‘Now’
January 21st, 2008 · 1 Comment · posted by Jon Lansner
U.S. markets were closed but global anxiety clearly did not take the day off. As Reuters News put it …
U.S. stock index futures were sharply lower on Monday, as fears of a U.S. recession gripped investors, suggesting Wall Street will join a global equity markets plunge when they resume trading Tuesday. Volume was active in spite of the U.S. stock market being closed for the Martin Luther King Jr. Day holiday. The sell-off in futures tracked global equities losses, as the MSCI’s main index of world stocks hit its lowest level in over a year. If U.S. stocks open on Tuesday at the levels futures are indicating, it would push the market dangerously close to bear market territory — or a 20 percent drop from their peak in October.
That stirred me to email Fed watcher Paul McCulley at bond giant Pimco in Newport Beach, to see what he thought the Fed should do about what looks like a disastrous opening to U.S. markets Tuesday. The Fed’s interest-rate committee doesn’t officially meet until Jan. 30. He said …”
