A Cut-Rate Market?


If cutting interest rates could help ease America’s pain, might the Fed cut by 50 basis points?

CNBC Senior Economics Reporter Steve Liesman joins the panel for this conversation. Following are excerpts.

I think the Fed is going to try to get infront of the credit crunch, says Liesman because the Fed is likely worried there’s more risk in the money center banks and weakness in the economy, overall.

However, I also think a 50 point cut is contingent on the Jobs Report. If it’s a strong number, the market probably won’t see it.

Will a 50 point rate cut send stocks higher?

If the Fed cuts 50 points I think the knee jerk reaction will be a huge run, says Pete Najarian.

A healthy market doesn’t need the Fed, counters Jeff Macke. I doen’t think a 50 point cut will do anything.

S&P 500

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Trader disclosure: On Dec. 4, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (ATVI), (DIS), (SWY); Najarian Owns (TSL) Options, (XMSR) Options, (YHOO) Options; Finerman's Firm And Finerman Own (GS); Finerman's Firm Owns (JWN), (KSS), (WMT), (YHOO); Finerman's Firm Owns (MSFT) Options, (BIIB) Options; Finerman's Firm Is Short (IJR), (IYR), (IWM), (SPY), (MBI), (LEN); Finerman's Firm Is Short (MDY) And Owns (MDY) Puts; Finerman's Firm Owns (HD) And (HD) Puts, Finerman Owns (HD); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns Russell 2000 Puts; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC