Federal Reserve lowers rates, determined to destroy U.S. economy

The futures started improving just before the Federal Reserve lowered the Fed Funds rate 75 basis points to 3.5%. The Fed also lowered the Discount Rate 75 bp to 4.0%.

The Federal Reserve is desperate to appease Wall Street at any price. Now Ron Insana, Jim Cramer et al whine on CNBC that the futures are not turning around because 75 bp was not enough. Apparently traders expected a full 1% bp cut now and at least 25 bp at the FOMC's January 30 meeting.

"The Committee expects inflation to moderate in coming quarters." How would they know?! Bernanke said last May that "the effect of the troubles in the subprime sector on the broader housing market will likely be limited."

Welcome to the world of hyperstagflation and a decimated consumer. The Federal Reserve needs a no-nonsense Chairman like Paul Volcker. Now.

Federal Reserve Board Press Release

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