Was Fed rate cut forced by markets?

As expected, the US Federal Reserve Bank lowered the Fed funds rate (the indicative rate in the overnight inter-bank market) by 25 basis points to 4.5%. It also lowered the discount rate at which it lends to banks by an identical 25 basis points to 5%. The moves, which were in line with market expectations, sent oil prices to a new high of $96 to a barrel and gold to a 28-year high of close to $ 800 an ounce even as the outlook for the US dollar turned uncertain.