Fed cuts rate by 50 basis points

S&P 500 up 2% after the announcement.

Given the inflationary trends of food, energy, and commodity prices, it seems to me that a 25 bp increase would be more appropriate here.

However, if the psychology of the credit markets continues to be mired in panic, then that could possibly destabilize markets even more than inflation.

I'm making a prediction here--people will look back a year and more from now, and wish that Fed held steady here, as they see the creep of inflation rocking their world.