The Fed is terrified!

No question in my mind that the Fed is terrified about the sluggish US economy! The Fed had announced last year that its near zero percent interest rate would be maintained at least till mid 2013. Today it went further by announcing that the extreme low interest rate would be kept at least till late 2014. Why? Because the US economy is really letting them down. Regardless how much money they have printed, they just cannot jump start the economy. They think the inflation is too low and they want to inflate. In other words, more money printing will continue. While it is extremely bad for the economy in the long run, it is great news for the stock markets as well as for precious metals. So you had a great rally today with almost everything. Gold jumped 2% up. This zero interest policy is also great for companies like Annaly (NLY). It will continue to enjoy the greatest interest spread to generate safe but thick dividends for investors.