Rising interest rates for now are generating views that the economic glass is half-full, even though the trend would seem to counteract aggressive monetary policy from the Federal Reserve.So try to keep this straight: Dropping rates are good, because it means that the Fed's QE2 program is working. Rising rates are good because the rise shows confidence that the Fed will continue to give us low rates*. The rates are rising now because people now believe the Fed will continue to intervene in the economy, but rates would have risen in the past if people did not now believe the Fed would intervene.
...[T]he Fed's long-expected announcement Nov. 3 that it was launching QE2 instead preceded a move higher in rates. Economists say that's because the easing has increased confidence the central bank will continue to intervene in the economy, and they say rates might be even higher had the Fed not intervened.
Bernanke would do the nation a great service by starting every speech telling us how many basis points were "created or saved" by his Not Printing Money(™) program. Then we would have something really objective to measure this all by.
* Even though their program to lower rates raised them instead.