The WSJ had a piece on the Fed, and look at this beauty. The Fed was concerned about cutting 50 basis points "but some might find it hard to justify when just a few weeks ago they thought they were finished cutting rates."
Kohn said in New York on Nov. 28 that the Fed needs to give some thought'' to how "liquidity facilities can remain effective when financial markets are under stress.'' Janet Yellen said that she "was open to constructive suggestions on enhancing liquidity."
Suggestions? Just cut 50 basis in the Fed funds, and 75 basis in the discount rate! How tough is that? But the Fed would like to cut the Fed funds 25, 50 in the discount rate, and extend the term of the notes to 90 days.
So they'll be dragged kicking and screaming to the former. But they want the whole world to know that it is being done reluctantly.