The Fed's 'tax on the consumer'

The FED is planning on inputing more money into the economy. According to Bernanke last August, they will institute quantitative easing, which is designed to lower interest rates and expand the economy.

But, with that promise, came a rise in commodity prices, which will further hurt consumers. The 10 year Treasury note yield was as low as 2.33% because of expectations of QE2. This rate is the key to setting mortgage and loan rates, so it is of vital importance. Banks will have more money, and lower rates will hopefully cause some people to borrow. Yet, debt-ridden Americans are unlikely to do so.