I think that's reasonable. And the other problem is mortgage rates aren't going down much because of large risk spreads, which means that lower Fed rates and lower bond rates aren't having their usual effect.
Lowering the Fed rates right now is not only useless, but counterproductive. It only reinforces the cycle, because people are not going to buy anything until the rates stop to go down and when they know that cycle ended. In other words rate cuts only prolong the downward agony and slow down the buying incentives, which in turn drags down the housing prices.
Either they shoud do a large one-time 100-125 basis points cut and say it’s over, or decide to stop right here and declare it’s over - and help banks to recapitalize some other way, if that’s even necessary.
Right now, the only people benefiting from interest rate cuts are speculators like George Soros, Bill Gross and Warrent Buffett who all are betting against the dollar and prod the Fed to cut the rates for their own benefit. Gross also benefits because it makes his bond portfolio rise in value.