Bigger Rate Cut from Fed Looks More Likely

The frenzied selling in stocks worldwide has market strategists talking more seriously about a 75-basis point rate cut from the Federal Reserve when it meets next week.

While market participants have been clamoring for several days for this big of a cut, economists and strategists are seeing this as a more likely possibility now because of the sudden and broad weakness in major markets around the world.

Tony Crescenzi, chief bond market strategist at Miller Tabak, said he can see why the Fed might be even more aggressive next week since the global pain signals potential systemic weakness. "The odds of 75 go up because there's systemic issues here, given the broad weakness in equities around the world," Crescenzi said. "The extra move can be justified by the systemic risk." ...