As mentioned in this blog on October 31, Frank Shostak said if the Fed cut rates to zero it
would underscore the reality that the Fed is incapable of producing wealth from its printing press. It would show that the Fed is completely powerless, except to produce mis-signals that generate malinvestment. The only thing that might temporarily move is the stock market.The rate cut was not quite to zero. A target rate of zero would be admitting utter futility, so Bernanke and his gang will keep the Fed Funds Rate between 0 - 0.25, which is almost utter futility. That's not zero. Don't anyone say it's zero, because it isn't. Still, Wall Street came through.