Unsubstantiated Rumors of a Fed Ease

There have been rumors overnight of a coordinated Fed /BoE easing and now Doug Kass at The Street.com echos those rumors. As a result there has been a large rally in the Front Eurodollar, Short Sterling and Euribor contracts vs. the rest of the curve.

Will have to wait and see if there is any truth or if someone just needs to dump a position...

Help on the Way? From the STREET.COM Doug Kass
1/9/2008 9:29 AM EST

I have friends who are very close to members of the Fed, and they say that the Fed will ease momentarily.

I have friends.

I have friends in Washington D.C.

I have friends who are very close to the Administration.

I have friends who are very close to members of the Fed.

This morning, several of those friends gave me an indication of heightened concerns regarding the domestic economy -- far more than what has been expressed by the President, the Secretary of the Treasury, and the Federal Reserve in various platforms over the last week.

And they say that the Fed will ease momentarily.

_____________________