I can see the fed cutting rates by 1/4 point next week. The secondary mortgage market is in collapse and interest rates for nonconforming mortgages has moved up. Two tiers of the mortgage market are currently hardly functioning. I think the fed has nothing to lose and everything to gain by cutting. If lowering rates to 1% wasn't too risky, then how can cutting to 5% when credit markets on in turmoil be a bad thing. I would not be shocked if fed does something any day now. Notice the dollar has stopped falling. Perhaps an intervention is in play to not let dollar crash heading into and then after a surprise cut.