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To: Cynic 2005 who wrote (7188)	9/29/1998 4:48:00 PM
From: Joseph G.	Read Replies (2) \| Respond to of 86076

Look on the bright side -g- <<Volcker had told Reuters in a recent interview a small Fed move would be ''mostly psychological.''>> biz.yahoo.com and psychology has not worked so far: <<NEW YORK, Sept 29 (Reuters) - U.S. corporate bonds reacted little to the U.S. Federal Reserve's much anticipated quarter-point cut in interest rates. Corporate bond prices were up a bit in the morning and moved down slightly just after the cut was announced, but trade remained thin, due partly to the start of the Yom Kippur Jewish holiday. Dealers said Wednesday would also probably remain quiet for the holiday, but business could pick up on Thursday. ''They tried to take it down a little (after the Fed cut), but not much moved,'' one high-grade dealer said. ''We're just hoping the primary market starts to build up again.'' >> <<NEW YORK, Sept 29 (Reuters) - The Dow fell Tuesday after the Federal Reserve trimmed interest rates by a widely-expected 25 basis points for the first time in nearly three years to cushion the U.S. economy from financial turmoil overseas. ''I think there was a little bit of an expectation that maybe it could be more than 25 basis points,'' said Harvey Hirschhorn, chief economist and investment strategist at Stein Roe and Farnham. The Dow Jones Industrial Average closed unofficially off 28.32 points at 8080.52. ''The Fed did the minimum they could do, so it was a little bit of a disappointment to the stock market,'' Hirschhorn said. There are 100 basis points in a full percentage point. The Dow, up 14 points just before the Fed made its mid- session announcement, tumbled about 90 points on initial disappointment before finding its footing near the close. ''We are disappointed because it was our belief that the Fed needed to take strong and decisive action to send the proper message and we don't think a quarter of percent does it,'' said Phil Orlando, chief investment officer at Value Line's Asset Management division. >>