by Calculated Risk on 9/18/2007 04:26:00 PM

The reactions to the Fed funds rate cut are extremely varied - from relief to outrage. Here are a couple excerpts from the WSJ: Economists React: ‘One and Done’?

The FOMC makes it sound like “one and done” as it cuts both the Fed funds and discount rate by 50 basis points but continues to note inflation risks… As of this writing, we no longer look for the Fed to cut rates in October but that position, like the Fed’s, remains data dependent. –Drew Matus, Lehman Brothers

And outrage:

Today’s irresponsible 50 basis point reduction is really just the hair of the dog that bit us and is a tacit admission that our economy is addicted to cheap money… A Fed bailout in the form of rate cuts will neither prevent the recession nor keep house prices from collapsing. It may slow the process down a few quarters, but it will cost us dearly. –Peter Schiff, Euro Pacific Capital