Lonski added that the depth of the cut--the Fed usually operates in more measured 25 point increments--shows that the central bank agrees with a consensus view that there is a 32% probability of recession in the next 12 months.
Had you asked investors if they were willing to lose 42% and then from that point gain 55% (as measured from the new low), they might have balked at the volatility.
Unless Greenspan begins hiking interest rates in half-point increments-his last seven hikes have been quarter points (a "measured pace" in Greenspanese)-average house prices won't collapse.
Unless Greenspan begins hiking interest rates in half-point increments--his last seven hikes have been quarter points (a "measured pace" in Greenspanese)--average house prices won't collapse.