It is good to see the Fed taking the bull by the horns...or should that be the bear by something?

They have cut interest rates to a range of between zero and 0.25% today. This cut recognises the magnitude of the problems that the US and the global economy is in.

As a student of the Great Depression Ben Bernanke has taken proactive steps to try and curb the US economic downwards spiral.

This cut will not be enough to get the economy out of the hole but it will go some way to helping in the long run. Don't expect instant results from this cut. The banks, in their current state, will take a while to pass on the cut to consumers and to start to lend again to business.

Expect 2009 to be a long and painful year, but for some, particularly those on fixed incomes, falling prices and lower interest rate cuts could come as a pleasant boost.