After last weeks’ unexpected .75% rate cut, you had to figure that the Fed was done playing for awhile.  Not so.  Today, at their scheduled meeting, they announced an additional .5% federal funds rate cut – that’s a total of 1.25% in a single week.  Before this rate cutting madness, the federal funds rate stood at 4.25%, while now it’s just 3.0%. 

Follow the link above to see why I think that a massive interest rate cut is not in our best interests, generally speaking.  I think inflation is a bigger risk than recession right now, though the Federal Reserve seems to disagree wholeheartedly.  If you’re in the market for a new car, buddy, you’ll be sitting pretty once this rate drop ripples over to the auto industry.  However, my condolences to folks with online savings accounts ( myself included ).  You’re about to take another slap in the face.