Wells Fargo ( WFC) Chief Economist John Silvia recently published his views on the recently passed health care bill and his outlook for Treasuries. On health care, he says higher tax rates on investment earnings will eventually lead to lower investment throughout the economy. "The new tax on medical devices and pharmaceutical companies will modestly reduce profitability of these firms and increase their cost of capital. This could lead to less innovation and product development." On Treasuries, he says the dollar could gain against other currencies when the Federal Reserve boosts rates. "If the Federal Reserve pushes short-term rates higher before other central banks, as we currently expect, it should prove modestly positive for the value of the dollar. Relative interest rates will likely favor dollar-dominated assets for the rest of this year and into 2011."