[2banana]

So why is the Fed cutting rates to below inflation and the congress passed a “stimulus” package in record time?

[1rudeboy]

Reading the article might help answer your questions.

[Richard Kimball]

Willie Nelson said that a leader is a guy who figures out which way the crowd is going and jumps in front of it. The cut and stimulus package are more emotional than factual stimulus packages (cut is IMHO more important than stimulus, but also more inflationary). The press is trying to talk the economy down to hurt the party in power (pubbies), but the problem is that since the Dems have congress, they'll catch part of the flak, too. When the stock market fell and fears of a recession started, the oil prices dropped, which was one of the big reasons for the slowing of the economy, anyway.

As an aside, when the market was falling, the price of oil was also falling, having gone from $100 to $85 a barrel in a relatively short period of time. The .75 rate cut stopped the market slide, but also IMHO stopped the oil price slide. Other Freepers disagree and think the oil price went up because of China and India increased usage, but I think speculation played a big part. Oil has rebounded to 90. I suspect that if the Feds had let the market shake out naturally, after the oil prices dropped to market, rather than speculative levels, say around $75, the market would have rebounded naturally. Course, what do I know? I'm not even a politician.

[Toddsterpatriot]

So why is the Fed cutting rates to below inflation

Fed Funds is 3.5%. I'm not sure inflation is above that.

and the congress passed a “stimulus” package in record time?

Politicians pander.