The Federal Reserve Open Market Committee

The Federal Reserve Open Market Committee (FOMC) is planned to reveal its ultimate financial guidelines conclusion for the year and almost positively this series next Tuesday. Fed Funds futures are pricing in a 94% possibility that Chairman Ben Bernanke and his associate rate setters are going to cut the benchmark lending rate an additional 75 basis points to a sheer 0.25 %. This can be the lowest level for the overnight lending rate in over 35 years and can push the policy weight to locate an another means to support lending and revitalize financial expansion. And they are going to surely have to find substitute. With the central bank assuring loans and supplying almost limitless liquidity to the market, monetary associations are uncertain to take counterparty risk and lend to each other.