French Finance Minister Lagarde says reduced inflation tensions mean we could see a rate cut in coming days. Right you are, Madame Finance Minister.
The markets are getting a lift this morning from easier credit market conditions. Benchmark three-month Libor rates fell to their lowest levels since June, a major improvement, and one that will begin to hit the bottom line of consumers who have floating rate loans pegged to Libor. This will allow monetary policy to begin having beneficial impacts on the economy.
