Ben Bernanke's new blog: interest rates, page-14

slange - read post - but last 3 lines are the ones that interest me - and it is for this reason that I think the US will not raise interest rates in June and maybe not this year because they will smack weak economy and then by their own admission "data based assessments" would then cut the interest rate hike back to where we are now.

I have great difficulty seeing in the near future HOW the world extracts itself from such low interest rates - the interest rate lows were designed to help the economy and in many ways try to stop the pain of what needed to happen but by doing this and not getting the bounce in the economy hoped for - no ammunition left and only damaging options ( interest rate hikes) in their eyes left which they will not do!!

to me it is catch 22 now and in many ways Ben is right - it will be a booming economy that turns it around but by trying to engineer a booming economy BEFORE it was capable of - we now appear to be in a self made trap of low interest rates??