Don't Play Cat and Mouse with Big Ben

You can price in whatever you want but the Federal Reserve doesn't have to do anything. Ben Bernanke didn't actually say the previous sentence but he may as well have. After the Fed cut the fed funds and discount rates 25 bps today the market didn't react all that well. I guess Ben doesn't like being bullied around all that much:

Top 10 Things You May Not Have Known About the FOMC

10. The Fed exists to insure maximum employment, price stability and moderate long term rates. Their purpose is not to backstop speculators

9. 4.25% Funds rate very accommodative and historically low.

8. Between votes, Fed Governors make fun of BLS economists.

7. Overheard at FOMC meetings: “What would Greenspan do? Let’s do the opposite!”

6. Jealous that Jean Claude Trichet gets to hang out with Gisele Bundchen

5. Doesn’t give a rat’s ass what Cramer thinks.

4. "Then it's resolved, we print more money and we make more speeches . . ."

3. There is no Santa Clause -- just some guy with a beard named Ben.

2. Has been long Gold and short the Dollar since 2003.

and the #1 thing you may not have known about the FOMC:

1. “Hey, Wall Street: We’re not your Bitch anymore.”