Economic reports - even the consumer price index - were not the focus of attention this week. All eyes were focused on the Federal Reserve. The Fed disappointed stock market investors by reducing the federal funds rate target by "only" 50 basis points. It is likely that stock investors would have been equally disappointed with a 75 basis point cut if they stopped to think that it would imply a much weaker economic environment.

The coming week will bring a new round of economic reports that are bound to cause another roller coaster ride in the bond and equity markets.