The Fed delivers

Having averted the falling of the sky, investors turned optimistic today (see post 4 down from this one), expecting the Federal Reserve Bank to lower the Federal Funds interest rate, and the Fed delivered. The 3/4 point cut disappointed some, but the markets rallied.

Fed Cuts Rates by 3/4 Point

A divided Fed cut interest rates by three-quarters of a percentage point to 2.25%, delivering less than the markets hoped for despite the magnitude of the move. The central bank highlighted growth risks, but discussed inflation concerns. The vote was 8-2 on the move.

• Parsing the Fed: See how the statement changed

• Econ Blog: A Closer Look at the Two Dissenters

• U.S. Mulls Next Steps in Crisis

Some people can never be satisfied. Three quarters of a point is a fairly aggressive move. Yet no matter what the Fed did, critics would appear to say negative things about what it did and/or did not do.