The Fed Open Market Committee met today. They opted to lower the fed funds rate 25 bips, and do the same with the discount rate. Some traders were sorely disappointed:
Among those not amused by The Fed’s decision to put the possibility of $5/gallon gas for many over the cleaning up of the errors of a few, screaming demon Jim Cramer – a bit whiny for this information consumer. Another person that will not be swigging fine scotch (like the bottle I just received as a holiday gift) tonight, Wells Fargo Chairman Richard Kovacevich, who was pretty certain just this morning that the Fed would cut the discount rate by 50 to 75 bips.
After the market closed, I was waiting for the Fed to say “Oops, we made a mistake.” But alas, it didn’t come. Thank goodness for that.
UPDATE: Fed governor Eric S. Rosengren was disappointed too.
UPDATE 3: Ha! Just kidding.