• Do we need more rate cuts ??
• Have the major rate cuts worked??
• Will more rate cut have any effect ??

The stock market continues to decline, the bailout has not helped ease credit and today, and today the Federal Reserve sharply lowered its projections for economic activity this year and next,

and the FED signaled that interest rate reductions may be needed to help combat the worst financial crisis to jolt the country in more than a half-century.

Facing the likelihood of "significant weakness" in the economy, some Fed officials suggested "additional policy easing could well be appropriate at future meetings," according to documents from the Fed's most recent closed-door deliberations on interest rate policy at the end of October.

At that Oct. 29 session, the Fed ratcheted down rates to 1 percent, a level seen only once before in the last half-century. Many economists predict the Fed will lower rates again at its last meeting of the year on Dec. 16, to help brace the sinking economy.

Even while hinting that another rate reduction could be forthcoming, Fed officials worried that the effectiveness of previous rate cuts "may have been diminished by the financial dislocations,

the FED is suggesting that rate cuts wouldnt hurt. But, it appears they are likely to help very little!