The Fed is Petrified

You can read the text of the Fed's statement here.

A quick summary:

• Cut fed funds to a target range between zero and 0.25%
• Cut discount rate to 0.5%
• Will support financial markets by purchasing agency debt and MBS
• Will look to possibly purchase longer term Treasuries
• Will consider other methods to use its balance sheet to support markets and economic activity
• Labor market conditions have deteriorated, credit is strained, the economic outlook has weakened significantly
• If you can think of anything else the FOMC can do to further dump liquidity on the market, please send them a note...