The horrid jobs report Friday gave The Fed every reason to lower rates at its next meeting on September 18, but how much relief is needed? Futures markets place a 75% chance that The Fed will cut by half a percentage point. How low will Ben go and what's the trade as he cuts?
Jeff Macke believes Friday’s jobs data will effectively compel The Fed to cut rates. He’s anticipating 50 basis points. In addition Jeff recommends selling the financials as soon as The Fed announces.
Karen Finerman reminds the panel that much could happen between now and the Fed Meeting.