The Fed has been “fed” up with the market, and now they’ve decided to cut another staggering quarter point. Do you this will be enough for the economy to be stable?

Well lets see..

The Federal Reserve lowered its benchmark interest rate by a quarter point to 4.25 percent, while signaling officials are open to further cuts if the housing slump and credit squeeze worsen.

Stocks fell and Treasury notes surged after the decision, which some economists said fell short of what’s needed to spur lending and avert a recession. The central bank also pared the discount rate by a quarter point to 4.75 percent, counter to speculation among investors that the Fed would make a deeper reduction.

“Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation,” the Federal Open Market Committee said in a statement after meeting today in Washington. Lower borrowing costs “`should help promote moderate growth over time.”

The Fed dropped language from its previous statement that risks of slower growth and faster inflation were “roughly” balanced. The economy is faltering after a third-quarter surge as house prices drop, consumer spending slows and banks tighten lending standards for even their best customers.

I don’t think this will raise the economy that much, but it will definitely help.

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