Fed Cuts Key Rate (16 Dec)

Fed, acknowledges that the recession is more severe than officials previously thought.

The Consumer Price Index (CPI) in October fell to 1.7 percent. There is a higher risk from Deflation than from Inflation. The interest rates are on a record low now due to the Fed's latest rate cut.
The dollar dropped sharply against the euro and other major currencies, a sign that currency markets were nervous about a flood of newly printed dollars. UK Pound falls sharply against Euro, after signs of more rate cuts.
With all the new printed (created) money the currency markets are getting uneasy.

Fed Cuts Key Rate to a Record Low (Permalink NYT)
By EDMUND L. ANDREWS and JACKIE CALMES
Published: December 17, 2008
Having reduced its key rate to a record low, the Fed said that it would use “all available tools” to fight the recession and downward pressure on prices.