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To: David Semoreson who wrote (15636)	10/15/1998 6:15:00 PM
From: Czechsinthemail	Respond to of 17305

Isn't the market over-reacting to a quarter-point cut? This rate cut essentially re-establishes the cut many were hoping for at the time of the last quarter point cut. At that point there was a major sell-off, so you could say this is simply rebalancing the effects of the reaction to the modest rate cut. On the other hand, this cut may be evidence that there is a notable shift toward lower interest rates that will be continuing. It may be a good news/bad news story in that there may be benefits from the additional liquidity, but it also indicates the Fed is more seriously concerned about recession. The market took the optimistic cue today, but if there are clearer signs of recession materializing that may reverse in the future. Baird