I expect Monday will be quite a bad time for the stock markets as the Fed finally and unambiguous pronounced that further rate cuts are not going to happen.

Fed Governor Kevin Warsh ditched the central bank’s cryptic word tangles and actually waxed poetic. “Even if the economy were to weaken somewhat further, we should be inclined to resist expected, reflexive calls to trot out the hammer again,” Warsh said, referring to the Fed’s key interest rate.

Even though the market or more less anticipated that there will be less rate cuts.  The Fed clear voice is seldom heard.  This time they are very clear on this and it won’t be good news to the market.

However, there is a silver lining.  By announcing no further rate cuts, they are actually giving a boost to the US Dollars to strengthen, this could in turn lessen the hedging pressures on crude oil and other commodities and lessen inflation.   It seemed that the Fed finally knows what is going on.