[...]
...the Fed would then come under strong pressure to cut interest rates at its August meeting, and would almost certainly bow to it. There is, however, no guarantee that it would be effective in restoring confidence. Why? Firstly, it would be a small cut of only 0.25 percentage points from the already low level of 1.75%. Secondly, it might be counter-productive, seen as a sign that the Fed was panicking (which it would be).
These policy types want us to believe the only influence they have over the economy is setting interest rates, and we're almost at zero now. In fact, they have plenty of things they can do, like cut out government regulations that hurt business. There's plenty of junk in the Federal Register that needs to be cut out. But since that would require giving up some power, its obviously going to be the last thing they'll try.