Low interest rates is exactly what you want in a normal, non-inflationary environment. It encourages lending for investment into projects that allows a rise in

Low interest rates is exactly what you want in a normal, non-inflationary environment. It encourages lending for investment into projects that allows a rise in economic activity. The only time you don't want low interest rates is when an excessive amount of loans fuels demand-pull inflation. (Though, interestingly, high interest rates can also fuel inflation via wealth effects. Overall, I tend to think interest rates are the wrong lever, and fiscal policy should be used at all times, but that's a whole other can of issues.) So the behavior is describe is exactly what is reasonable. Now, the whole QE thing is obviously pushing on a string. The zero lower bound means it's not going to help economic activity. QE is like going to a witch doctor because all the people who could really help - in this case, the people in control of fiscal policy - can't get their heads out of their proverbial asses.