" the housing bust is so big and the tax rebate is so small that I guess the dollar will keep dropping into summer and the Fed will not be able to do much to help it. "
As usual your complete lack of understanding how any market works is astonishing.
A rate cut would increase the rate of inflation as well as devalue the dollar.
A rate increase would have the opposite effect however since the financial sector has created such a mess the Fed is trying to influence a market which it should not meddle with. Their MAIN concern is inflation, we / they have lost sight of what they are to control.
Bailing out an incompetent financial industry as well as the truly stupid homeowners is ridiculous. I guess we should all go with our hands held out since living day to day is hard. . . what a joke.