I don't think the FED knows what it's even supposed to do anymore.
Actually, I think it is more complicated. FED is in a tricky position of having to solve a financial crisis but not appear to be doing so. If everyone understands FED is in crisis management mode, that worsens the crisis. e.g. Imagine what a run on major banks will do now. So, they have to resort to these underhanded black arts to pump money into the arteries. They seem to be whispering: show me a secret hole, (any hole as long as it is hidden from public view) where I can squeeze some funds in.
