In a stunning turn of events this week, the Federal Reserve defied economists' expectations that the central bank would rein in quantitative easing. Expectations were for a $10-$20 billion reduction in the Fed's $85 billion-a-month bond purchasing program. Instead, the Fed vowed to continue buying bonds until additional evidence suggested that the economy was on a firmer footing.
I am not surprised with this course of action as Ben Bernanke has clearly stated in his writings and speeches that he strongly believes the Great Depression was extended by incorrect fiscal policy focused on tightening money supply. For that reason, we expect Quantitative Easing to remain alive and well for the foreseeable future.
(Read more: No Fed taper brings back talk of currency war)
This is not to say that interest rates are destined to remain low forever; clearly rates will rise as economic activity expands. The stumbling recovery playing out at present qualifies as economic expansion, and given that monetary agencies around the world are injecting billions of dollars into economies, additional progress appears likely.