The market has already priced a 25 bp cut in rates at the Fed meeting today. Some are hoping for 50 bps or more. But a surprising number of people (39%) in an unscientific WSJ poll are saying, "Don't do it." The theory? Inflation should be the main concern and a rate cut rewards the stupidity of speculators who levered deals too much and at the cost of those who were more rational. I admit that I like this attitude. You pay your money, you take your chances, so long as it does not foul up the whole kit and kaboodle. And if that means a few hedgies have to go without a new jet this year, then so be it. I was brought up to believe that you pay your debts and you live with your mistakes, even if that means some sacrifice.
P.S. For more in-depth -- and spot on, in my opinion -- analysis, check out the link in the Comments section to The Bloodhound Blog.