The FOMC did trim both the Fed Funds Rate and the Discount Rate by 25 basis points each today.   There was some dissention among the Fed Governors if you read through the statement.  You can see the full commentary here.  Because of the rate cut theorists out there making their opposite calls on the same data, you can imagine there is ammo here for the bulls and bears alike.   Some wanted a 50 basis point cut, while others are arguing that rates aren’t able to fix the current credit problems.

We had already noted how a rate cut borders alongside a potential dollar crisis.

Here was the 50/50 cut from September for comparison.