Wall Street Reaction to no more rate cuts?

4 Federal Governors are publicly stating that they are against further cuts.

http://www.bloomberg.com/apps/news?pid=20601087&sid=adJIM71hYaxo&refer=home
“Federal Reserve policy makers, sensing both renewed inflation dangers and a possible economic boost from government rebate checks, may be nearing a pause in interest-rate cuts after the fastest reductions in two decades.”

Maybe this is just a way to talk down inflation.
Maybe the Fed will indulge in 1 more cut on the 30th and then wait.

Certainly cutting rates has been a success in reinflating the balance sheets of many banks.

Why we care:
Wall Street likes rate cuts. Right now, the Federal Funds rate is BELOW inflation. The Fed is literally giving away money.

And the impact is a reinflated Wall Street. Will the Fed now pop that bubble? They don't want to, considering the ongoing mess. A positive Dow helps to buy time for the ailing financials. But the Fed is also aware that a lot of people are getting mighty pissed off at runaway inflation. The real CPI, including gas and food, is topping 7%.

Perhaps the Fed really believes its own bullshit that all will be better by July (a stronger 2nd half, they proclaim). Which would make them willing to hold the line on rates.