Reuters - We expected 25 basis points, it was the consensus in the marketplace. The Fed would been hard pressed to cut more given that they have done 50 and then 25. If they had cut more it would have frightened markets (saying) that they knew more than they were letting on. They couched this cut in economic terms but the Fed is really reacting to the financial situation. They realize the financial situation could have economic effects. They are not looking at the economic data as much as they normally do.
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