The Fed’s 1% Solution

``The Federal Reserve did what was expected, and no more, cutting interest rates by a half-point to 1%, and that’s produced a bit of disappointment among equity investors who were hoping for a more dramatic move from the Fed governors. Stocks dropped, quickly rebounded, and then headed lower again... Of course, the effective federal-funds has been below 1% on a daily basis for the past two weeks and if market conditions warrant aggressive open-market operations from the Fed, this new target will be ignored as well.''