Raise rates just like the central bank of Australia did today; they Aussie Dollar rallied hard and sharply. And the Australian central bank indicated more to come... Let's see what the real intentions of the U.S. fiscal policy makers are. More 0% loans to banks and financial institutions, while they in turn loan the money out @ 9% to 30% (CC companies) to consumers and small businesses, or a strengthened dollar that establishes consumer pricing power?
You gotta wonder how long it will take for the S&P to get back to 1500 with rates at zero percent. It almost seems as though Bernanke is hell bent on creating another equity bubble. If other nations follow the Aussies and the FED keeps rates at 0 the USD will deteriorate rapidly and the USD will move closer and closer to losing its status as the reserve currency. Maybe this is just part of the plan?