Earlier today the Federal Reserve said it would lower interest rates by a quarter percentage point.

CNN reports: “US light crude for June delivery fell $2.17 cents to settle at $113.46 a barrel on the New York Mercantile Exchange. Just before the central bank’s announcement, oil was 93 cents lower at $114.70 a barrel.

The Fed rate cut is expected to the last for a the moment after the Fed suggested it will watch inflation.

“This seems a good time to mention that you should be selling your house and buying gold with all your money,” says the Mogambo Guru, “and if the kids have to miss a few meals or if they have to sleep in the car because I cannot afford an apartment big enough for all of us but it is perfectly cozy enough for me, that is the price you are willing to pay.”

Just about everyone is predicting another rate cut, but will this rate cut be the last for a while?

CNN says “trading in futures markets predicts the Fed will cut its key fed funds overnight lending target by a quarter-point, to 2%, and hold the line there in coming months.”

The BBC says: “Fed ready to cut interest rate.” “Rate cut seen,” says Reuters.

“The interest-rate reduction could set in motion a series of diverse global events that will impact such seemingly unrelated areas as European inflation, global food prices, the US. dollar, American exports, and the already chilly relationship between the European Central Bank (ECB) and the government of France,” says Jennifer Yousfi in Money Morning.

Chuck Butler in The Daily Pfenning says thoughts of another rate cut by the Fed “has the dollar swinging the hammer again… And every currency has taken a hit from the hammer overnight… Except for Chinese renminbi…”

Bill Bonner has Paul Volcker in mind (and his warning that a painful adjustment is coming) but all he sees is “Ben Bernanke promising to drop dollars from helicopters, if necessary, in order to keep the economy bubbling along.

Bill says, “the Fed is unlikely to fall victim of a sudden attack of monetary integrity. The dollar is unlikely to rise very far against gold.”