Fed Cuts funds rate and discount rate (rate banks borrow money at) by three quarters (3/4) of a point each. Fed funds rate is now 2.25%. Gold just dropped from $1000 (plus) to $995 on the news. Wall Street was expecting/hoping for a full point rate cut, so look for a big give back of today's 300 point rally from earlier in the day, when investors were optimistic of the full point cut they didn't get.
FMOC:
* Uncertainty over inflation outlook increases.
* Inflation should moderate over coming quarters.
* Will monitor inflation carefully. (ZD says it's worse than they can admit!)
* Markets remain under considerable stress.
* Fed Will act in timely manner to promote growth, price stability.
* Housing contratraction likely to weigh on growth. Downside risk to growth still remains.
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