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To: Kelvin Taylor who wrote (30937)	4/18/2001 2:48:25 PM
From: Kelvin Taylor	Respond to of 53068

From the Fed press release today: "...capital investment has continued to soften and the persistent erosion in current and expected profitability, in combination with rising uncertainty about the business outlook, seems poised to dampen capital spending going forward. This potential restraint, together with the possible effects of earlier reductions in equity wealth on consumption and the risk of slower growth abroad, threatens to keep the pace of economic activity unacceptably weak. hmmmm... do I hear the stock market decline as a reason for the rate cut? I thought the wealth effect was inflationary and therefore was hinderance to the economy?