The Federal Rate Cut- Boom or bane

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The US Federal Reserve has cut interest rates for the second time in just over a week,citing concerns over the Financial Markets. The Fed's action come just 8 days after the Central Bank slashed rates by three-quarters of a point. The cumulative 1.25% point reduction in the rates in less than two weeks show that US Fed is pulling out all stops to stabilize financial markets. US Financial markets remain under considerable stress, and credit has tightened further for some businesses and households.Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets. According to some analysts this is like a cure for the wrong disease.It makes everybody feel good,but its not going to have any ongoing benefit. The need of the hour is to get out of a mountain of debt and overvalued properties.The markets worry that consumers who account for two-thirds of economic activity, are not in a position to spend the country back into solid growth. They have been cutting back rather than borrowing or spending more.A rate cut at this point tends to spur the economy by making it cheaper for businesses to borrow money. Based on the above facts do you think that the Federal rate cut is a boom or a bane???????? Sadanand.