Too little, too late?

That is at least what the markets seem to be signalling after the FOMC decision to cut the key target rate and the discount rate by 25 basis points each and announce a change in focus from the more balanced growth and inflation worries to growth worries only.
The Fed's behavior since it first started taking action in August suggest a reluctance to ally market fears that the risk of an economic slowdown is greater than that of a surge in inflation. The Fed seems more concerned that further cuts will fuel a rise in inflation. From their remarks, they also seem to be confident that fine tuning on various fronts (key rate, discount window, extension of loan periods etc) in coming weeks and months will suffice to calm credit markets thereby averting a full blown recession. Markets clearly disagree, some economists going as far as suggesting that a recession may already be under way.
Nevertheless, there seems to have been a shift in strategy within the Fed as nine out of the ten voting members voted in favor of the 25 basis point cut (the dissenting voice was in favor of a 50 basis point cut) in contrast with the prior meeting in October in which the only dissenting voice was in favor of keeping rates steady.
As the economy continues to suffer in an environment in which borrowing is becoming increasingly difficult and costly, the impact that is already being felt amongst businesses will eventually trickle down to consumers (that are already feeling the strain of the housing recession and rising commodity prices). In other words time is of essence if the Fed has any chance of averting a more severe downturn in growth.