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Fed Did the Right Thing Cutting Rates: Wall Street

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Nearly 75 percent of Wall Street pros responding to the CNBC Trillion Dollar Snap Survey think the Federal Reserve did the right thing by cutting interest rates by three-quarters of a point, to 3.5%, this morning.

Another 10 percent tell us the Fed should have cut more. Sixteen percent take the opposite view, saying the Fed should have cut less or not at all today.

Almost all of those who answered our survey expect more rate cuts to come. The survey shows expectations the Fed Fund rates will be just under 2.75 percent six months from now.

That endorsement of today's rate cut comes amid deepening expectations the United States will experience an economic recession this year.

Our survey shows a 55 percent probability of a downturn in 2008. That's up from a 39 percent probability in our most recent survey three months ago.

The nation's top money managers, investment strategists and professional economists overwhelmingly expect stocks to eventually rebound.

97 percent say the current stock market weakness will prove to be a buying opportunity over the period of a year or more.

But the consensus forecast for the S&P 500 stock index this year is down from a 6.64 percent gain at the beginning of the month to an advance of just 2.76 percent.

Currently, the benchmark index is:

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