It will mean Fed decided to sacrifice US$ at the expense of stocks. But this will be too dangerous step with unpredictable consequences.
From one side, spiral of inflation is already unwinding in the US with an unbelievable pace. Money recently pumped into bank system will be displayed very soon and add to inflation. Other rate cuts or even another rate cut will add to inflation too. Thus, DJ may rocket to 16-17000, after or without a dip. As for CPI, it does not reflect the reality and became a pure water bluff. The history already knows economies when there were an inflation and a deflation at the same time.
From other side, sacrificing US$ there is a high risk coming from foreign investors: who will invest if US$ is weakenning faster than stocks are growing ?
This may sound a conspirology, who know, but may be Fed decided to arrange first a crash on world markets, including US itself, and then will promptly revive US stocks growth when others will be still in ruines ? Fast growing stocks will demand more US$, so stocks growth will go together with US$ strengthenning.
