The Federal Open Market Committee cut the federal funds rate another 50 basis points  to 3%. It was predictable and the markets were happy as a result of the move.
The WSJ’s always cool Parsing The Fed  explains the meaning behind the words. Hint: Housing.
Yesterday investors were betting a 60% probability that the Fed would drop rates  another 50 basis points. And the FOMC did not dissappoint.
The prior week’s rate cut seems to be influencing more refi activity . It’ll help affordability in some markets and temper some of the foreclosure activity, but its no panacea for the housing market.
I am wondering when and how the credit markets are going to get “de-spooked.” Is it just a matter of time? or is the economy in need of more action. Its an election year so look for stimulus plans II & III.