NEW YORK ( TheStreet) -- Federal Reserve Chairman Ben Bernanke testified on Wednesday in front of Congress explaining that the Fed may or may not rein in quantitative easing in upcoming sessions, based on the future economic situation. That brought a much needed pullback to equity markets, and introduced further uncertainty over the state of the economy for the rest of 2013.Meanwhile, earlier this week, Home Depot (HD - Get Report) released strong earnings and raised its outlook. The company believes that the housing market, if not the entire economy, is on the rebound.
The next chart represents the Treasury 30-year rate. The Federal Reserve has enacted unorthodox measures in order to drop rates and spur long-term investment. The rise of Home Depot and the housing market has fallen in stride with 30-year rates and the accumulation of mortgage-backed securities by the Fed. With Bernanke reiterating on Wednesday that a change in policy would add instability to markets, it looks like rates will stay suppressed for the better part of 2013, maybe into 2014. That could play a part in Home Depot projecting a rosier outlook than had been expected.