http://news.yahoo.com/s/ap/20081026/ap_on_bi_ge/fed_interest_ratesWASHINGTON – As the economic wreckage piles dangerously higher, the Federal Reserve is prepared to ratchet down interest rates — perhaps to their lowest point in more than four years — with the hope of relieving some of the pain felt by many Americans.
The convergence of a housing collapse and a lockup in lending has created the worst financial crisis in more than a half-century. Alan Greenspan, who ran the Fed for 18 1/2 years, called it a "once-in-a century credit tsunami," and conceded that he made mistakes that may have aggravated the economy's slump.
With a recession seen as inevitable, if not already under way, any Fed rate cut would be aimed at cushioning the fallout.
One gets the sense that they are 'grasping at straws' at this juncture.