Ben Bernanke’s Federal Reserve said Tuesday that the U.S. economy is in more trouble than it previously thought. So weak, in fact, that officials expect to hold interest rates at record lows — practically zero — for the next two years.
The Fed listed the economy’s numerous problems: Growth has slowed “considerably,” the job market has deteriorated, consumer spending has “flattened out” and housing “remains depressed.”
The stock market, which is supposed to trade based on companies’ future earnings expectations, surged 4 percent — more than 400 points for the Dow.
Bring on the bad news!