Market is hoping for news of a cut sometime this year, and I think they are going to be disappointed when, not if, the Fed comes out with a rather hawkish statement considering the latest price levels.
A cut, or a bailout, because of the "subprime" woes is complete horseshit, and if it is mentioned by Bernanke and crew then I'm going to move to China or something. Liquidity was what got us in this place in the first place, turning it back on is just going to let those who made assinine decisions in their financial life get away with them, AND it will encourage other idiots to go and do the same thing with new cheap money.
No, I think the Fed realizes that this is a bitter pill we need to swallow.