What's the Fed's Next Move?

I know I just got done writing about how I felt that the employment numbers last Friday meant that the Fed was being handed their instructions on when to cut and by how much. Then Bernanke and company decided to pull this little liquidity move today and offer up $200 billion to investment banks. Then the equities markets reacted quite nicely with a jump of over 400 points on the Dow. Pretty impressive. The only problem now is that it re-opens the question of the next Fed meeting. Do they still cut by 75 basis points? 50 basis points? Do they trim it down to 25 basis points after the positive reaction from today? Or is the impossible going to become possible and they don't cut at all and start standing firm and defending the dollar?

Frankly I don't believe the last case to be true, but more and more I find myself being torn about the first two options. I can see the argument that can be made for the 75 point cut because in combination with today's actions, perhaps it is a potent one-two punch that can really be a shot in the arm for the markets at large. However I think the 50 point cut is the most logical and likely after today.

What does this mean? Well, the most basic interpretation is that there is still going to be a cut and that will still continue to devalue the dollar. This will in turn create another surge in currency futures, perhaps not too large since it has been built into the price for a while, but a nice little punch all the same. Commodities in general should do well based on this continued falling dollar.

Overall, the actions of this week are not going to make or break any market, but I am looking for continued strength in the commodities markets going forward.