I think their desired stance is to stand pat for an extended period of time rather than cut rates, unless they are confronted with an external shock to the global financial system.

I think (Fed Chairman) Alan Greenspan has made it all but official, we'll get another rate cut in June, but my guess is a quarter point rate cut, principally because of what we're seeing on the inflation report. The CPI and PPI have been trending up over the last two years.

I think the Fed felt this was not the time to be cautious and conservative.

There's no case for no cut at all at this point. There have been better economic numbers, but [policy makers] expect to see that. If I interpret what they've been saying correctly, this economy could grow 4.5 or 5 percent for a year without putting upward pressure on inflation.

I think if you take those two things together, there is some hope.

It is a genuine shocker... I don't think anyone anticipated a decline of this magnitude.