I think the falling dollar and swooning stock market are due, in fact, to the expectation rates WILL be cut soon. The FCB's, as you call them, are grumbling. But demand for Treasuries seems only to rise -- witness the falling rates of 10-year bonds.
I don't see them cutting. I know the smart money has already priced in the cut, but I'm oil, currency and pm's which I'll add to as the dollar comes up on a dead cat bounce. Oil's priced in dollars and will continue to rise as the dollar drops while it drops or stabilizes as the other currencies rise.
Paulson and Bernake are in for a good hinney bustin' if they drop the rates. Stagflation will get them.