The Fed made two significant moves in the last 24 hours. Yesterday the Federal Reserve announced the unprecedented move of offering major companies access to their discount window, to borrow directly from the Federal Reserve (truly making them a lender of last resort), and bypass the major banks.
The major banks continue to hoard cash and will not put it back into circulation, no doubt frustrating the Federal Reserve. It may be time to call for aggregious penalties for member banks that borrow from the Fed (whose motivation is to stimulate the economy), but only put those proceeds into their own coffers.
Today the Federal Reserve Board of Governors voted to reduce the Fed Funds target rate from 2.00% to 1.50%. So far, this has only moved mortgage rates a net 25 bps in price for the day, or a rate adjustment of about 0.065% to the end customer.