Federal Reserve System

Update: Wall Street Journal: "We are running out of the traditional ammunition that's used in a recession, which is to lower interest rates. They're getting to be about as low as they can go. And although the Fed is still going to have more tools available to it, it is critical that the other branches of government step up."
- Barack Obama in a news conference in which he called for a government spending stimulus program.

The incoming Obama administration has just been granted a political license to pursue virtually anything it wants in fiscal policy in light of the seriousness with which the Fed is addressing the economic situation facing the world.

Reducing its key rate to a historic low, near zero, the Fed said it would use “all available tools” to fight the recession; in other words War against the recession by any means necessary.
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Reads the Fed's statement:

For immediate release

The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.