Recent information indicates that 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. This was the opening of the fed's accompanying statement.

While some comment on inflation were made as indicating that there are some risk associated with price stability, as the latest indicators showed a tendency to the upside in prices, yet they expect it o moderate over time with the slowing economic growth yet they have to monitor it closely.

The fed said that those steps that were taken to handle the crisis should promote economic growth and stability in the financial market yet risks remain, and the feds are welling to act in a timely manner to address all the problems in the economy in terms of both growth and inflation.

The voting was 8 to 2, only Mr. Fisher and Mr. Plosser voted for a less aggressive interest rate movement.

Dollar took the news in a good way, although it was a little bit disappointing, while future stock indices lost some of the gains they made earlier in a first reaction top the release, yet the question remains will that movement be good enough to handle the crisis or at least to cushion the blow.

The fed has taken many steps to handle the liquidity problem, and now they are taking both the benchmark rate and the discount rate down 0.75%, but how investors economists perceive those news is the thing that will actually move the market in a certain direction, but as we learned greedy investors might end up eventually taking the 75 basis point as a weak stance from the U.S. policy makers.