Personally, I believe the fed will continue to cut until the lending rate is zero, like Japan did in the nineties.  Nothing and no one, not even Ben et al., can turn this economy around.  From the Associated Press:

There’s a risk in Federal Reserve Chairman Ben Bernanke’s bold moves of late.

If recent history is any guide, the euphoria that met the Fed’s three-quarter-point reduction to a key interest rate Tuesday could be short-lived. With a string of urgent and aggressive actions, the Fed itself could end up feeding the panicky mind-set that it so desperately wants to calm.

Two Fed members dissented, preferring a smaller cut, while Bernanke and seven others prevailed with a more powerful three-quarter-point one. Cuts of this size are pretty infrequent. Bernanke, in an emergency session in January, ordered one – making for the single-biggest reduction in more than two decades.

Read more…