According to Federal Reserve Chairman Ben Bernanke: 

The "outlook for real activity in 2008 has worsened, and the downside risks to growth have become more pronounced," Mr. Bernanke said. "In light of recent changes in the outlook for and the risks to growth, additional policy easing may well be necessary."…Mr. Bernanke stressed in his remarks that the Fed could act quickly: The central bank must "remain exceptionally alert and flexible, prepared to act in a decisive and timely manner and, in particular, to counter any adverse dynamics that might threaten economic or financial stability."

The bond market is expecting a 50 basis point reduction in the Fed's overnight lending rate. For more details contact us!