Finally the Fed 'bite the bullet-it's suicidal"

The Fed's announcement of a half percentage point cut in rates to 4.75% tiggered an international stock market rally today.

This is not cooling the economy but to try and avoid an impending recession.

But the underlying tone is still "some risks of inflation" Previously the tightening of credit conditions has caused disruptions in the financial markets and has the potential to intensify the housing correction and restrain economic growth.

So the ripples effect is now being contained but the effects of this rate cut towards the economy is yet to be seen in months ahead.

The Fed has a tough time deciding:-
Rogers Says US in Recession, Fed Should Raise Rates: Video Sept. ...
Rogers Says US in Recession, Fed Should Raise Rates: Video Sept. 18 (Bloomberg)-- Jim Rogers, chairman of Beeland Interests Inc ... - 2007-09-18

Hear what Fund Manager,Marc Faber says:-

Marc Faber Says Fed Rate Cut Would Be `Suicidal': Video Sept. 18 ...
Marc Faber Says Fed Rate Cut Would Be `Suicidal': Video Sept. 18 (Bloomberg) --Marc Faber, managing director at Marc Faber Ltd. ... - 2007-09-18

Tracking the Dow Movement on Tuesday.

Noticed the Dow index spiked up at 2:10pm EST upon the announcement of rate cut.A long white bullish marobozu.The strong infantry & calvary of armies with helicopter ben gunship advanced aggressively and ended the day near the peak.The victory flag has not been planted yet.

It's a sigh of relief and celebration for the world financial market today.A good timing of speech by the Fed's committee!