In a speech at the Economics Club of Washington, Bernanke reiterated his position on ultra low interest rates.

His headline quote is that the economy is facing: "formidable headwinds." He then went on to restate his position in detail. For the overall economy, he sees a moderate recovery. Credit remains tight, especially for individuals and small businesses.

Have you looked at a chart of the 30-year bond lately? What you see may be a bit disconcerting. In the past few weeks the June contract has fallen from a high of about 143 to a low of 115 or $28,000 (each 100 point equals $1000.00.) Remember when the Federal Reserve announced that it would buy US treasuries and it was anticipated that the bonds would rally? Well as you can see, this did not happen.

US treasuries have been selling off because investors see a mountain of debt that needs financing, and the effect of this process is putting downward pressure on treasuries, with yields rising. (Prices and yields move in inverse directions. As the price goes down, the yield goes up.)