Response to Fed Action Mixed
Source: HedgeWorld News - September 18, 2007
September 2007

SCM Advisors' Chief Strategist Maxwell Bublitz was quoted in an article by Chidem Kurdas on what the Federal Reserve's next step might be following its September 17th rate cut.

Quoted from HedgeWorld News:

While stocks rallied, the rate reductions complicate choices for bond investors. Bond vigilantes are not too happy, according to Max Bublitz, chief strategist at SCM Advisors LLC... a fixed-income specialist firm.

But Mr. Bublitz described the easing as the right thing to do, though he would have preferred a larger cut in the discount rate. He said he still anticipates some hedge fund redemption problems at the end of September and in early October...

Mr. Bublitz guessed that more cuts may follow after rather weak economic data this autumn, but he also noted that there'll be plenty of time and data to help the Fed decide.

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