Yes, the Fed has cut rates again

Before the market even opened this morning, the Fed announced another rate cut.  I had expected them to cut the rate next when they had announced the probability of it next week. However, they felt that with the looming recession, that it was prudent for the economy.  The federal fund rate was cut 3/4 point to 3.5%.   The discount rate was also reduced to 4%. With these rate cuts, what does this mean for the American economy?  Well, consumers have already had fear strike within them.  The Dow dropped 400 points within an hour of opening bell.  While consumers are fearful, the Fed hopes this will actually relax consumers by bringing confidence into our economy. The benefit of this rate cut will not be seen immediately, but sometime in the coming weeks and months. Even though the Fed has made a cut now, they are still planning to cut it again on January 30.