It looks as though the Fed decided to cut the Fed Funds rate and the discount funds rate. It reminds me of the old saying "barring the barn door after the horse is already out". Although some hope this will drive down mortgage rates, the fed has no control over mortgage rates. It will be more likely to affect credit card and auto loan rates which are tied to the discount rate .

The Fed Funds rate, which is the amount banks pay to borrow from each other, was cut from 4.25 to 3.5% while the Discount rate followed suit, going from 4.75-4.00%. Bank of America immediately cut their prime rate and several other banks followed suit.

The rate cuts will help ailing banks more than consumers in the short term as even a reduction in mortgage rates will only benefit those with good credit that are able to move in and snatch up some of the bargains in the depressed housing market.

The fed is widely expected to make even more rate cuts at their regular meeting coming in less than a week. Meanwhile, the President and Congress can't agree on how much and who should receive their proposed income tax rebate.

I for one can't see how this is going to help the deeply troubled US economy. Maybe the HDTV market will benefit if the rebates are large enough