Is [Ben] Bernanke right in moving so precipitously? Or is he caving into to political pressures to stimulate the economy in an election year and to popular desire to keep stocks out of a bear market?
At this point I'm going to give Bernanke's policy the "thumbs up." But I have my eyes on the foreign exchange and commodity markets. If the dollar tanks or commodity prices surge, then all bets are off, and Bernanke will have to put an end to these cuts and may have to actually increase rates. But if commodity prices don't rise and a recession is avoided, this new aggressive policy may well change the way central banks steer the economy.
~ Jeremy Siegel, "Bernanke's Fed," Yahoo! Finance, February 1, 2008