[pgyanke]

The Fed is holding a ton of bonds. What happens to the value of those bonds when rates rise? They are going to take some serious losses.

Now you know why they won't allow rates to rise... when they should.

[Starboard]

Also, if rates rise (1) the interest on the national debt goes up and (2) the resulting economic slowdown will hurt Dems. Yes, the Fed has painted itself into a corner.