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Biotech / Medical : Biotech Valuation
CRSP 53.85-4.5%Jan 9 9:30 AM EST

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To: IRWIN JAMES FRANKEL who wrote (7046)9/5/2002 10:47:38 AM
From: aknahow  Read Replies (2) of 52153
 
At this point further cuts on the short end, i.e. the fed funds rate and the less important discount rate might actually send medium and longer term rates up. A good case could be made that medium and longer term rates continued to move lower because the Fed did not make an additional cut at its' last meeting. We have reached the point where further cuts generate inflation fears which are negative for interest rates. If the FED is seen as desperate enough to make further cuts in the fed fund rate what will they do with the money supply?
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