Emergency Rate Cut

I took it all for granted
But how was I to know
That you'd be letting go
--Bryan Adams

Speaking of volatility, less than an hour ago the Federal Reserve did something that the central bank has done only eight times previously: it announced an emergency rate cut. The last time the Fed did so was in August 2008 in the midst of the Lehman collapse.

The emergency 50 bip cut lowers the target Fed Funds Rate to 1 - 1.25%.

Stocks jumped nearly 2% on the news but have since pulled back as traders ponder what/why. Gold, however, seems more decisive, and is up nearly $35 on the news.

The Fed Put, it seems, is alive and well.

position in gold