The fed maybe able to control interest rates but they have no control when it comes to the bond market.IMHO the markets will hand Bernake & Geithner their heads. These kind of meetings always remind me when Hirohito of Japan sent his ambassador to Roosevelt tell him that his country had no interest in getting involved in the war. Really!
"In 2000, then-BOJ Governor Masaru Hayami was widely derided for raising rates from zero to 0.25 percent. Pundits called him Japan's answer to Herbert Hoover. Yet Hayami was trying to force Japan Inc. to implement structural reforms. It didn't work and rates returned to zero in March 2001." - William Pesek
Here was my commentary.
"Think about that for a minute. 0.25% made him Japan's answer to Herbert Hoover? I think that gives a very accurate reading on just how overleveraged this global economy is and has been."
I would also add that I wrote that in September 2007 shortly after starting my Illusion of Prosperity blog. I'd say it held up pretty well in hindsight. Sigh.