US interest rates: playing ketchup

NORTH AMERICA

The Fed insists it will maintain interest rates at 'exceptionally low levels' for an 'extended period', writes Martin Currie's Tom Walker

After spending more than four years as chairman of the Federal Reserve, Ben Bernanke will have grown accustomed to a degree of criticism: it goes with the turf. But over the last 12 months, a new charge has been levelled at ‘Helicopter Ben’ and his colleagues on the Fed’s rate-setting committee. According to the hawks, the Fed is overlooking a principle of physics familiar to anyone who has tried – and failed – to apply a modest dollop of ketchup to the side of his plate: “Shake, shake the ketchup bottle. First none’ll come, And then a lot’ll.” Having fallen into disuse (blame squeezy...