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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (57433)	4/26/1999 12:51:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to 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