I found this article interesting. Though it isn't the point of the article, I think it offers another reason why rates may remain (ie: continue to be manipulated) Low. Fed tapering: The math investors need to know - Brett Arends's ROI - MarketWatch
Full article in link (the comments after the article offer much to consider)
, A portion below :
Commentary: What ‘normal’ interest rates would do to stock valuations ...
So let’s do the numbers, shall we?
As recently as May, as a result of the policies of the Federal Reserve, the basic interest rate which underpins financial markets — the interest rate on the 10-year Treasury note — was as low as 1.6%. Today it’s already risen to 2.7%. Furthermore, history says the interest rate has typically fluctuated around 2% above inflation. Over time, that’s what people who’ve been willing to own ten-year Treasury bonds have expected as an average return on their money. As the bond market currently predicts inflation of about 2.5% over the next decade, we can estimate that when the Fed stops rigging interest rates and they go completely back to normal, the rate on the ten-year would probably be around 4.5%.
Now let’s look at what that means for stocks.
To put this in very simple logic: The Federal Reserve has been suppressing interest-rates to boost the economy. That suppression artificially hiked the value of the stock market, by a simple mathematical equation. Now that suppression is coming to an end, interest rates can be expected to rise. That rise ought — again, by a simple mathematical equation — to reduce the value of the stock market. Dramatically.