SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Ask Michael Burke

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: valueminded who wrote (57433)4/26/1999 12:51:00 PM
From: Don Lloyd  Read Replies (1) of 132070
 
Chris - (...Any threat on the dollar (including a stock market decline) will be met by rate cuts from the FED...)

Assuming that a 'threat on the dollar' means a reduction in the value of the dollar in the foreign exchange markets, rate cuts would usually reduce the foreign demand for dollars as its rate of return is reduced, not counter the threat. Also, a reduction in rates is associated with a reluctance to fight possible inflation, also a negative for the dollar as those dollars held may suffer reduced purchasing power.

Regards, Don
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext