Here's something I've been thinking about today - we have all sorts of advice and criticism for people when we think they're doing something wrong, but we almost never offer praise or encouragement or thanks when they're doing something right - you're doing a really great job at editing and administrating these various boards, Andrew. There is always something new and interesting to read, and I know how tough it is to get people to contribute and follow through on their promises. Both contributors and commenters get a chance to offer their opinions and receive a fair hearing. This is a great site and it's fun to participate in something new like this.

With all due respect to Dr King, I was wondering yesterday if, with the stock market turmoil around the world, the Fed would act in between meetings.

But I did not expect this.

This is huge. 75bps between meetings is huge.

Let me put it in context - here's a table of the rate moves going back to 1970. Since 1981, when the discount rate was in double figures, only once has the Fed moved rates more than half a percentage point. That was November 1994, when the Fed hiked by 75bps at a sceduled meeting. In short, the Fed has not in 25 years cut rates by this amount. It has not in this time frame adjusted rates on this magnitude between meetings.

The last time it cut rates between meetings was a week after 9/11, and that then was half a percent, less than today. Goodness knows what happens when the stock market opens. If there is ever a case that a Fed intervention might serve to panic the market, this has to be it. Maybe the 75bp cut was in order, but this has to scare as many people as it will hearten.