As the yield on the 10-year Treasury note climbed more than 1 ½ % since the first of the year, bond traders attributed the rapid ascent to increasing inflationary pressures.  The Federal Reserve has instead taken a "glass half-full" position on the topic, suggesting that the rise in rates was the result of renewed enthusiasm for the recovery of the $14 trillion US economy.  At the completion of its scheduled meeting last week, the Bernanke-led Fed announced that "inflation will remain subdued for some time" and that such conditions will permit the central bank to keep short-term rates at "exceptionally low levels for an extended period" (source: Federal Reserve). 
 
Americans have taken note of the tough economic times, pushing the national personal savings rate (defined as savings as a percentage of disposable income) to 6.9% in May, its highest level in 15 ½ years.  Ironically, the improvement of our economy may be achieved quicker if/when Americans increase their spending, a mixed message to thousands of consumers that may finally understand the difference between "wants" and "needs" (source: Department of Commerce).   
 
Bernie Madoff, the mastermind behind the largest Ponzi scheme in US history, will be sentenced today in New York City.  The 71-year old could receive 150 years in prison.  Less than 2 weeks before Madoff was arrested last December, his investors were told they held assets worth $65 billion on $13 billion of invested money.  Less than $1 billion has since been recovered (source: Wall Street Journal).