FED Cuts rate; as the Market falls again

The FED cut its rate again by quarter a point; even then, the US Markets and the DOW falls again on Tuesday.

The Wall Street expected atleast half a point cut on the FED Rates; was not happy/satisfied with the quarter point cut.

FED Cuts its rate again in this quarter (again by quarter a point) to help stave off recession says a special report from CNN Money.

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As Srivatsan and I were discussing couple of weeks back. To put it in Srivatsan's words, as I quote:

Its a deadlock. Fed Rate, Dollar Value, Inflation.
Touching any one of the three will do nothing only but to increase the other two. The lately added crisis to the US market, the huge Billion dollar write down by most of the Financial Institutions; their CEO's forced to quit, the mortgages crisis all getting into one at once, making the life of an investor miserable.

Unquote.

Is US heading for another recession?
How much will this affect the Asian and the European Markets?
Is this for good or bad?
Only time is the answer at this point.