People tend to forget that a zero federal funds rate is supposed to be an emergency measure. Low interest rates help people afford to buy houses and other investments, but they hurt traditional savers. People who speculate on homes and stocks do better, while people on wage income with CDs and savings accounts get screwed, further incentivizing the bubble economy. It's a pedal to the metal approach to keep asset values as inflated as possible while doing nothing about wages. But beyond even more "quantitative easing", there's no farther for the Fed to go on this front even to reinflate assets.

We've been at "pedal to the metal" for years, and we're apparently going to stay there with no end in sight.

That's not to say that a zero interest rate environment isn't necessary during a major recession. It probably is. But a zero-interest rate environment for years and years on end during a largely jobless recovery is more proof that the economy is broken. There's an argument to be had over whether the governmental and financial elites in this area are greedy, incompetent or both. But the notion that they deserve unquestioned respect as arcane priests of economic wisdom is ludicrous.

They're essentially throwing every asset-inflating policy against the wall to see what sticks, and praying something works.

http://digbysblog.blogspot.com/2012/01/pedal-to-metal-is-new-normal-by.html