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I am playing this headline with (GLD IAU DZZ DGZ GLL) because "Nick: If you look at inflation, you see inflation's actually quite low; core inflation is actually decreasing. So we don't have an inflation problem here. Plus, we have 10 percent unemployment and a large output gap still in the economy. So those three things taken together would dictate that the Federal Reserve should be cutting rates to well below zero, probably something like -4 or -5 percent, which obviously they can't do.
So the fact that they're at zero, as contradictory as this may sound, that's actually a relatively restrictive stance at the moment. That's one of the reasons why they took extra measures: because they knew that they had a lower bound of zero, and they needed to do other things to increase the money supply, to get economic activity moving again. "
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