Fast Money Recap: Picks Off the Fed

As the Fed prepares for its highly anticipated meeting on Tuesday, the team at CNBC's "Fast Money" traded ideas and thoughts based on a potential change in the rates.

Mike Darda, chief economist and director of research for MKM Partners, joined the crew to talk about the Fed. Darda would like to see a cut in the Fed funds rate by 25 basis points and the discount rate by 50 basis points. Jeff Macke wants the Fed to cut 25 basis points and give a bullish bias toward growth. Guy Adami thinks no matter what the Fed does on Tuesday the market is going to fall, especially with the way the technicals are lining up.

So, what is a trade idea for the Fed meeting? Adami says buy Public Service Enterprise Group(PEG Quote - Cramer on PEG - Stock Picks) because utilities will perform well if the Fed lowers rates.

CNBC Senior Economic Reporter Steve Liesman maintains the Fed can help the consumer since many of the consumer rates are tied to LIBOR and the Fed funds. He doesn't believe the U.S. is heading into a recession, but he does see a current housing bubble.

Macke agrees that rate cuts are good for the retail sector, but he feels investors should take their time in building positions. He likes Target(TGT Quote - Cramer on TGT - Stock Picks) and Macy's(M Quote - Cramer on M - Stock Picks)

Finerman points out that lots of the retail names have been hit hard and this presents an opportunity. She is also positive about Target. (RealMoney Take: Steven Smith said recently, "Target options have been particularly active on news that the retailer is considering selling some assets including its credit card business." To read more on what Smith said, click here.)

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