[adios]

The 50 basis point cut in Fed Funds and the Discount rate in reality don't mean that much. A series of cuts do though. Greenie cut 75 basis points in 98 after the LTCM implosion but that's all he did. It wasn't that long before he embarked on a tightening phase which ultimately ended in a recession. I believe the Fed Funds rate was 4.5% after the 75 basis point cuts in 98. IMO economy was stronger and there was a much higher demand for labor reflected in more jobs being created in the economy than now. Oil was also at or near rock bottom prices, budget deficits much lower, etc. so the US $ was very much stronger. I don't think you can lay a weak US $ on Bernanke but could be convinced otherwise. So I don't see this as being as inflationary as many people make it out to be. I think a lot of people are anticipating more rate cuts in the next several months but I wouldn't be too sure of that. Fed Funds rate was at 1% not too long ago and there was a lot of speculation about the threat of deflation, go figure.