Fed 75 bps cut - Neither Chicken Little Nor Bagdad Bob?

The Fed votes 8-2 to cut the Federal Funds Rate from 3.00% to 2.25%. From the Fed Release:

The Federal Open Market Committee decided today to lower its target for the federal funds rate 75 basis points to 2-1/4 percent...

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; Gary H. Stern; and Kevin M. Warsh. Voting against were Richard W. Fisher and Charles I. Plosser, who preferred less aggressive action at this meeting.

In a related action, the Board of Governors unanimously approved a 75-basis-point decrease in the discount rate to 2-1/2 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, and San Francisco.

I am heartened to see that there were no votes for a 100 bps (or more cut), so my fears this morning may have been unfounded. I just never thought I would see the day where a 75 bps cut would be considered the least agressive option.

I am pleased overall - this is likely the best case scenario for those of us who are worried about inflation.