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Politics : Idea Of The Day

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To: jtech who wrote (39671)	5/15/2001 10:19:59 PM
From: Peace	Read Replies (1) of 50167

The bond has a long maturity and all these cuts the fed has done is going to increase the economic growth down the road which will translate in to more inflation (in a relative sense) so the rate has to go up. Bottom line - the bond market (yield curve) has been signalling for a while now that there is no recession in sight and there is potential inflationary threat down the road which will be caused by excessive growth. <g>

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