Wall Street plunged Tuesday after the Federal Reserve shaved both its Fed funds target and discount rates by 25 basis points.

    The Fed's decision disappointed some investors who had hoped the central bank would take more aggressive measures. There was debate over the size of the cut. Most economists had hoped for a quarter-point cut to 4.25 percent, but Wall Street was looking for a much stronger sign, expecting a half-point cut.

    Although the Fed officials signaled that further cuts are possible if a severe downturn in housing and a crisis in mortgage lending get worse, it seemed that the Fed thought no rush to bring the interest rate down.

    The Fed offered a more tepid assessment of the economy than equity investors were looking for. Disappointed investors concerned that the cut wouldn't be enough to stimulate the economy next year.

    The Dow fell 294.26, or 2.14 percent, to 13,432.77 after dropping as much as 313.12. Broader indexes also fell. The Standard & Poor's 500 index fell 38.31, or 2.53 percent, to 1,477.65, and the Nasdaq composite index fell 66.60, or 2.45 percent, to2,652.35.