Titanic, or Tiger by the Tail?

Housing and financial markets have collectively been holding their breath, awaiting decisions from the Federal Reserve on possible monetary policy changes. And the results are in. The Federal Open Market Committee, the Fed's monetary policy arm, voted to reduce two key short-term interest rates at its most recent meeting. Is this a solution to the subprime market woes, and the swings and plunges that market prices have been taking alongside them?