Bernanke Admits- The Economy is Weak-If We Tighten the Economy Would Tank

“I don’t think the Fed can get interest rates up very much, because the economy is weak, inflation rates are low, if we were to tighten policy, the economy would tank.” Ben Bernanke testifying at the House Financial Services Committee last week.

With those words Ben Bernanke confirmed what we have been saying for months on the Smaulgld blog-the Fed can not exit from its quantitative easing (QE) program because to do so would cause the economy to collapse (we never used the word “tank”).

Read more about this stunning admission from the Chairman of the Federal Reserve.