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A further rate cut will result in catastrophically low levels of income from new annuities.
If so, the likelihood of a further rate cut next month has increased.
Though the Fed left its future options open, markets anticipated a further rate cut at its next meeting.
"The Fed is very worried about the economic outlook" said William Dudley, chief United States economist at Goldman , Sachs "because they are not precluding a further rate cut".
Moreover, he said, the bank fears that the yen will further appreciate, and it wants to hold a further rate cut in reserve.
Wall Street considers the Fed's response to the summer credit crisis to have been "broadly successful but not fully successful," he said, explaining the market's call for one further rate cut.
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Economists are split over the benefits of further rate cuts.
"It would leave room for further rate cuts if needed.
President Trump will get his wish: no further rate cuts.
Analysts said, however, that further rate cuts appeared unlikely unless severe deflationary pressure emerged.
There is a respectable line of argument that further rate cuts may not help.
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