This restrained language in the statement is unusual since recent speeches by Fed officials have indicated a willingness to be much more aggressive in dealing with the current financial problems. This statement does not seem to be consistent with earlier comments.

This is unusual since the market was merely looking for assurances from the Fed that it understood the severity of the current financial situation. Because of the recent stronger-than-expected employment reports, the Fed may want to keep its options open. However, it could have reassured the investment community today without promising future actions. The Fed clearly understands the severity of the current financial problems, as indicated by its earlier comments and the lone dissenting vote to cut rates by 0.50%.

The market should stabilize after the disappointment with the decision is absorbed by Wall Street over the next few days. However, if this does not occur, additional comments (and in the worst-case scenario, an intra-meeting rate reduction) may be required by Fed officials to restore confidence that the Fed is not falling behind the curve. However, it would be better if this had been accomplished with less disruption in the official statement.

Doug Roberts is the Founder and Chief Investment Strategist for FollowtheFed.com, an independent research firm focusing on investment strategies using the Federal Reserve's impact on the stock prices. He previously held executive positions at Morgan Stanley Group and Sanford C. Bernstein & Co.