Fed cuts rates, again, this time by a half-point, dropping its short-term interest rate to 3% for a total of a 1.25% cut in eight days.
The reason, according to their released statement:
Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.
The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.
So, the Fed is more worried about a recession than inflation. The bathtub is overspilling, but at least the greedy sponges are getting fat on excess water.
Yvonne Yen Liu is a nerd for the racial justice movement. She lives in Oakland, California. You can write to her at 
