Quote Originally Posted by Markass
inflation will rise, it's not something that's going to happen overnight but it's going to happen...
You mean prices will rise, or prices will inflate. It would seem so, but with the rate so close to zero, every time prices go relatively up they can use open market operations to pull money out of the economy.

what bugs me about this is what if this doesn't 'save' the economy?? What's next? Zero Percent? What if that doesn't do it..
Monetary policy is more of an art from then an actual science. Look for a huge fiscal stimulus package to be used in an attempt to revive the aggregate demand shortfall.