Let's face it. If I said to you "I'm going to give you a ton of money at near zero interest rates and I won't raise the rate until you create jobs." The last thing you are going to do is create a job. You may remortgage your house and then invest in some stocks or financial engineering, but you are going to milk the cow for as long as possible by not creating jobs.
It seem Ms. Yallen and the San Francisco Fed agrees. Today they came out with an economic letter which says QE is a waste of time.
Click on the link and read.....
The conclusion says:
"Asset purchase programs like QE2 appear to have, at best, moderate effects on economic growth and inflation. Research suggests that the key reason these effects are limited is that bond market segmentation is small. Moreover, the magnitude of LSAP effects depends greatly on expectations for interest rate policy, but those effects are weaker and more uncertain than conventional interest rate policy. This suggests that communication about the beginning of federal funds rate increases will have stronger effects than guidance about the end of asset purchases."
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.