My guess is the FED will say “core inflation is under control, job levels are good, and they are keeping an eye on the credit crunch”, and do nothing.
Translation: food/energy are still burdensome, unemployment is growing as all things associated with RE tank, but some jobs are resurfacing in retail and service inndustries, and the credit tsunami is landing, but since we’ve done nothing for a year, we can’t do anything now.
Lowering rates kills the dollar, raising them kills business.
