The 50 basis point cut in the benchmark interest rates by the Fed has made the global central bankers to be perceived as pandering to the interests of the market participants rather that addressing the real needs of their respective economies. Fed policymakers at the Aug 7 meeting Fed said that though the downside risks to growth had increased somewhat, it continued to identify inflation as the biggest risk for the economy. However, in less than two weeks, the Fed found the "downside risks to growth have increased appreciably," as the credit crunch spread and financial markets grew more turbulent. A drop in interest rates has triggered an across the board dollar devaluation and promoted inflationary pressure by sending the commodity prices to sky highs. All major commodities like crude and wheat are hitting all time highs and this is likely to hit the US consumers hard at a time when the US housing slump worsens further in coming weeks.