I'm not fool enough to try to predict macroeconomic trends. I will say, though, that when the Fed chief hints at the prospect of a big rate cut on the heels of bad holiday retail sales, my first instinct is to think "panic!" rather than "looks like Ben Bernanke is responding appropriately to signs of economic trouble!" Both, however, seem like reasonably valid responses.
UPDATE: Krugman votes for doom, says interest rate cuts effect the economy mainly through their impact on the housing market, but it may not be possible to further prop-up the housing market at this point.