MBS's are mixed following the .5/.5 announcement. Check out full text here:
The Federal Open Market Committee decided today to lower its target for the
federal funds rate 50 basis points to 3 percent.
Financial markets remain under considerable stress, and credit has tightened
further for some businesses and households. Moreover, recent information
indicates a deepening of the housing contraction as well as some softening in
labor markets.
The Committee expects inflation to moderate in coming quarters, but it will
be necessary to continue to monitor inflation developments carefully.
Today s policy action, combined with those taken earlier, should help to
promote moderate growth over time and to mitigate the risks to economic
activity. However, downside risks to growth remain. The Committee will continue
to assess the effects of financial and other developments on economic prospects
and will act in a timely manner as needed to address those risks.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman;
Timothy F. Geithner, Vice Chairman; Donald L. Kohn; Randall S. Kroszner;
Frederic S. Mishkin; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and
Kevin M. Warsh. Voting against was Richard W. Fisher, who preferred no change in
the target for the federal funds rate at this meeting.
In a related action, the Board of Governors unanimously approved a 50-basis-
point decrease in the discount rate to 3-1/2 percent. In taking this action, the
Board approved the requests submitted by the Boards of Directors of the Federal
Reserve Banks of Boston, New York, Philadelphia, Cleveland, Atlanta, Chicago,
St. Louis, Kansas City, and San Francisco. Source: Federal Reserve