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Fed cuts key interest rate for a second time to guard against recession threats

Was it necessary? The reports out today show that the economy has been fine, despite the credit crunch. This will further hurt the dollar and thereby drive up oil prices and other commodities.

Your comment about the rise in oil prices being one of the reasons the Fed acted to lower rates is inconsistent with the statements by the Fed. The rise in oil prices contributes to inflation, which is cause for the Fed to RAISE rates, not lower them. By lowering rates, the dollar is further weakened, meaning it will cost EVEN MORE to import oil. Don�t your writers know any more about economics than how to spell the word?

The recent one half percent federal rate cut had no effect on commercial paper rates, and little effect on other rates. This quarter percent reduction will have even less of an effect. The Fed seems uncommitted to seeing rates drop, since they left the prime rate alone, again.

For those who love inflation and a decimated dollar, Christmas has come twice this year. In short, Bernanke Claus has decided to condone and reward those on the naughty list (i.e. fiscally irresponsible companies and individuals) with two rate cuts. This is truly pathetic.

Yes, the economy grew by 3.9% and many markets were seeing increases. The overall market is resilient and doing fine. Unfortunately, Bernanke is too tied to Wall Street and the Fed can�t help but interfere with a market that should be left alone. In short, there is no justification for this cut or the previous cut.

The only people that are stating that the sky is falling are those who are hoping to be bailed out for their greed, poor investment �strategy� and fiscal irresponsibility. Yeah, it�s nice to know that Wall Street investors and financial institutions are calling the shots and pulling the strings. They manufactured enough hysteria that Bernanke bought the �hype� and made the ill-advised to give in and cut rates. This creates more problems than it solves.

Hey Publius, wasn�t that Jefferson�s pseudonym?