Discount rate and FED Funds rate both cut .25.
Some thought this was always priced into the market, but it appears many traders were hoping for more as the DOW is down sharply 10 minutes after the announcement. This should pump some money into the bond market.
They talked about uncertainty increasing in the economic outlook, which is good for mortgage rates, but also noted the possibility of future inflation which is bad for rates. Even though this statement was more or less neutral as far as the impact I would expect it to have on mortgage rates, the weakness in the Stock Market, will still be good for rates today. In addition, bond traders may not have liked a .5% cut due to fears of inflation. Seeing that the cut is only .25% should also be good for rates.
At the formal statement, I will reassess. Recommendation for the rest of the day is FLOAT, until further notice.