The Fed's decision to cut interest rates by three-quarters of a point is being jeered in some circles as a last-ditch effort to pander and/or appease Wall Street. But U.S. News reports that Fed Chairman Ben Bernanke is saying privately that the economic situation is far worse than what he's been letting on in public.

We're told by those who've heard him that he says the first six months of this year will be "bad," an adjective that some interpret this as signaling there is better than a 50-50 chance for a recession. Even worse, the former Princeton prof believes the ensuing recovery will be "weak" because of persistent problems in the housing market that will result in subdued consumer spending.

Actually, the Federal Open Market Committee's statement accompanying today's rate cut has an ominous tone:

The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.