Fed delivers another rate cut

DOES THIS MEAN WE ARE IN A LOT MORE TROUBLE ?

I REALLY THINK SO, AND I AM NOT ALONE!

One member of the Federal Open Market Committee, Dallas Fed President Richard Fisher, voted against the cut in the fed funds rate, arguing that rates should have been left unchanged after the series of rate cuts by the central bank in recent months. Fisher is generally seen as a so-called inflation hawk who is greatly concerned with maintaining price stability.
The Fed's statement acknowledged that the risk of inflation needs to be monitored, but said that the majority of members believed that price pressures to moderate in coming quarters.
It said the rate cuts were necessary because problems in the credit markets were putting a squeeze on both consumers and businesses. It also sees growing weakness in both the job market and the battered housing market.
"Today's policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity," said the statement. "However, downside risks to growth remain."
The Fed also appeared to hint in its statement that it will keep cutting rates if the economy shows more signs of decline.
"The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks," it said.
Keith Hembre, chief economist for First American Funds, said if there was any surprise in the Fed action, it's that the statement suggested a far greater likelihood of further cuts than he was expecting.
"I thought that they would probably include some language to temper expectations of any additional cuts in the near term," he said. "That statement makes it sounds like they're still in motion."
Wall Street is now betting on more rate cuts in the next few months. According to federal funds futures on the Chicago Board of Trade, investors are pricing in a 100 percent chance of at least another quarter point cut by the end of April and a 26 percent chance of a half-point of cuts. The Fed will meet in March and April.