Without much of a surprise, the Fed didn't change interest rates at today's meeting keeping the Fed Funds rate steady at 5.25%.

The Fed seemed to justify this decision by saying they expect "solid growth in employment and incomes" in coming quarters -- factors that would indicate economic health. The Fed also managed to acknowledge that the forming "credit crunch" has forced the housing market lower and increased the stock market's volatility. As such, if these conditions became worse the Fed could justify cutting rates.

There's a growing group of Wall Streeters advocating that Chairman Ben Bernanke begins cutting rates due to inflation risks and credit worries shortly. Lower rates allow people to borrow money at lower costs, allowing them to purchase new houses and keep demand steady in the housing market. But due to higher rates, these people argue, foreclosures are going to continue to increase as people can't support their mortgage payments -- a move that could propel the entire economy into a recession. In addition, higher interest rates stand to weaken the consumer as cheap credit is no longer available. In fact, Jim Cramer himself came on CNBC and yelled seemed to yell his anger out towards anyone who would listen.

Barring unusual circumstances, I highly doubt Bernanke will cut interest rates within the next few months. However, if a true recession begins to appear via an even weaker housing market, very troubled consumer, and employment/income issues, Bernanke will make the right move and cut the Fed Funds Rate.