Section of Fed statement below:

The Federal Open Market Committee decided today to lower its target for the federal funds rate 75 basis points to 2-1/4 percent.

Recent information indicates that the outlook for economic activity has weakened further. Growth in consumer spending has slowed and labor markets have softened. Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters.

Hillary doesn’t think these rate cuts are enough and says she wants freeze on sub prime mortgage rates. Go figure.

Paul Krugman raises the possibility of a liquidity trap: where rates are so low that the Fed’s monetary vehicle is powerless to effect the economy.

Bloomberg asks if the Fed is running out of ammunition – how soon before you can’t go any lower when your dropping at 0.75% every 8-10 weeks? October?

The Guru has decided to not go negative with this one – like Obama – he has decided to keep things positive no matter how much noise the skeleton in the closet makes!

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