http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm Does that mean despite Fed cut target rate 0.25% in reality they cut 0.5%?
No... look at the range, from 2.75% to 5.5% on that day. It's not always easy to pinpoint exactly 4.25%. The NY Fed trading desk tries, but it's easy to overshoot one way or the other. In this environment they might err on the low (rate) side.