
"The pace of deterioration in labor market
conditions appears to be accelerating as the economy rapidly loses
momentum. As a result, we believe that the Fed will announce an
intermeeting 50 bp cut in the official fed funds target rate at some
point in the coming days. However, it is worth noting that the Fed has
already engineered a steal ease since the effective average funds rate
has averaged 1.32% over the past two weeks.