By now, most people "who know" in the financial world expect the Federal Reserve to cut interest rates at their meeting tomorrow. And while stocks are still a little tender on bad news from Britain, in general there is a degree of optimism that comes with a Fed rate cut. But could a cut to interest rates be overrated? The Wall Street Journal points out that the U.S. economy is on such a trend that a Fed rate cut may not be all the hype promises it will be:

Though the stock market surged last week on optimism that a widely
expected interest-rate cut by the Fed would boost stocks, such a rate
cut would offer little immediate help for the fundamental problems
weighing on the nation’s economy and financial markets. These include a
worsening housing slump and high gasoline prices, which are damping
consumer spending, and fears of further defaults on the billions of
dollars of low-quality loans that have been used to finance mortgages
and corporate takeovers.

It is true that a Fed rate cut could give the mortgage industry a bit of a boost — the lower rates would attract new mortgage applications. However, with tightened lending standards, how many people will truly be able to take advantage of them?