Moody's Lonski Sees Fed Cut in Absence of Housing Bottom

Lonski is pretty outspoken. He sees the Fed cutting rates as long as housing does not bottom. Contrary to that believe the market starts to price in a rate increase by November 2008 according to FF futures and Eurodollar futures.

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John Lonski, chief economist at Moody's Investors Service, talks with Bloomberg's Rhonda Schaffler and Suzanne O'Halloran in New York about Federal Reserve Chairman Ben S. Bernanke's speech to an Atlanta Fed conference in Sea Island, Georgia, today, the outlook for Fed monetary policy, the U.S. housing market and economic growth.

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video: John Lonski, chief economist at Moody's Investors Service, talks with Bloomberg
http://www.bloomberg.com/avp/avp.asxx?clip=mms://media2.bloomberg.com/cache/vMpIVMXf7QZE.asf