Implausible as it may seem, there's been an Elvis sighting recently, with the King masquerading as Fed chairman Ben Bernanke, resplendent in crooner's cape and blue suede shoes. It may just have been an impromptu karaoke performance, but Ben the Pelvis was overheard crooning "It's one for the money . . . two for the show . . . three to get ready, now go cat go."

OK, he hasn't really been dressing up as Elvis, but he may have something there when it comes to explaining current monetary policy in the US and elsewhere. For while there may be only one policy rate at any particular point in time, its disparate effect on two different segments of the US economy is showing. The result has been, and may continue to be a freezing of fed funds at 5.25 per cent until . . . well, until Ben counts to three and this cool cat starts to go - in one direction or another. Let me explain.