Reply #9: Answer: Fed expected to cut rates for 2nd time [View All]

WASHINGTON - With oil prices soaring and the housing market sinking, the Federal Reserve is likely to combat the economic turmoil with more interest rate cuts.

Federal Reserve Chairman Ben Bernanke and his colleagues were wrapping up a two-day meeting Wednesday and many economists believe they will announce that they have decided to follow September's half-point cut in the federal funds rate with a quarter-point cut at this meeting.

"They are going to cut rates," predicted Mark Zandi, chief economist at Moody's Economy.com. "The economy is weakening and financial markets remain unsettled."

Many analysts said this rate reduction probably will not be the last either, as the central bank keeps reducing rates to help the economy overcome a host of problems.

http://news.yahoo.com/s/ap/20071031/ap_on_bi_ge/fed_interest_rates

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So the Fed wants to recreate the conditions that brought us to this sorry state. Meanwhile - Paulsen yammers on about our 'strong dollar' policy.