Today the Federal Reserve cut the fed funds rate again for the 7th time in a row however this time could be the last cut we will see for some time. The Fed has hinted that while we are still in financial turmoil they have done enough to affect the economy in the long run. Since rate cuts have a lag effect they are not likely to be realized for several months at a time. The Fed also cited that inflationary pressures are on the increase which it might have to fight with rate increases it has mentioned that economic growth remains a priority further suggesting that the rates will be kept at current levels.

Weak Jobs data and reports that the cost of food and oil continue to rise further put stress on our economy as whole, however the fed hinted that they where optimistic on the current situation given the fact that a rate pause or increase would increase the buying power of the dollar in the global markets which should help with broader inflationary pressures.

While delinquencies are down and the credit crisis has hinted signs that a recovery experts have warned that we still need to be concerned about a large swath of mortgages that did not adjust yet and possibly could not refinance do to negative equity issues which further supports President Bush's call on congress to pass FHA legislation to provide a possible cushion to such a crisis.