Bernanke does't strike me as the type to drop rates just for the market. His reaction to the next big economic report, and of course, the Fed meeting on the 30th, will be telling.
Perhaps the markets are sending him a warning shot.
The Fed just lowreed the discount rate by 75 Basis Points, .75%......
Just reported that the Fed cut by 3/4 percent.
I didn't think so either.
But then I thought about all the people who will get margin calls if the market drops precipitously. Maybe this is one of the main reasons they dropped the rate this morning...to try to avoid this.