Market Outlook for the Week

The Fed meets Tuesday, and most of the market is awaiting a rate cut decision. Most believe a 25bps cut, although 50bps isn't completely out of the question. It's probably going to be the biggest factor affecting the markets this week.

On the one hand, with rising gasoline costs and the fear of inflation, the Fed may decide to keep rates where they are, on the other hand, and what most believe, the Fed needs to stimulate the market and the economy by loosening the credit markets, and a rate cut is exactly what it needs.