Bernanke Is Not Superman

If you listen to the financial media, you might get the impression that the Fed has complete control over the general level of interest rates. If Bernanke wants the rates to go up they will go up and they will go up by the amount he dictates. If he does not want them to go up, they will remain unchanged. While it is true that the Federal Reserve does have significance influence over the general level of interest rates, their power is not absolute. The bond market is a $35 trillion giant and t...