Fed Steps Up To The Plate, Cuts Rates 0.50%

I admit I was nervous that the Fed would disappoint the market with a 25 bps cut. And I raised more cash ahead of the meeting to prepare for a market selloff. But the Fed came through with a 50 bps cut, and for the moment that markets are breathing a sigh of relief and rallying.

Here are some of the comments from the FOMC:

• Fed says to continue to assess affects of financial, other developments, will act in a 'timely manner'
• Fed says downside risks to growth remain, cumulative policy actions should promote growth, ease risks
• Fed says expects inflation to moderate in coming quarters, will be necessary to monitor carefully
• Fed says financial markets remain under considerable stress; business, household credit has tighten
• Fed says actions to 'promote moderate growth over time'

FOMC meeting days make for volatile trading. I'm sure this nascent rally attempt today will be tested with some selling. So check back after the close for a roundup.