Bernanke, in testimony to the House Financial Services Committee, essentially repeated the rationale behind the Fed's decision last week to hold rates near zero. He cited still-fragile economic conditions, and noted that inflation is low, which gives the Fed leeway to keep rates at rock-bottom levels.
What will surprise and should scare global investors how long this will last. Unless deficit spending and QE accelerates to the levels achieved after the US's entrance into World War II (WWII), the time in which rates are held low (size of the yellow box) will be much longer than that of the second Great Depression (1929-1941).
US TBill Yield and Gold London PM Fixed:
Source: news.yahoo.com
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