"It could cause interest rates to rise," he said, "and that in turn is a problem for the stock market."
Such a move would cause interest rates to drop.
Inflation caused interest rates to rise and home building slowed until late 1984.
This causes bond prices to drop and rates to go up, he noted.
That's the danger that the economic picture will change several months down the road, causing interest rates to go in the opposite direction.
But confusion over the unemployment data caused rates to bounce back.
But the figures caused long-term interest rates to rise to their highest levels since August.
In the long run, that borrowing would suck up private capital and cause long-term interest rates to rise.
The larger supply of bills could cause rates to rise to make them more attractive to investors, according to some market participants.
Strategic parents might spend a large portion of their tax cuts, causing interest rates to rise.