The Fed is evading commonsense and sound economics by relying on fancy stochastic dynamic general equilibriummodels, in which erratic money plays no role, and ignoring the fact that the real source of consumption is production, not money.
Although DSGE models are also based on microeconomic foundations, they accept the traditional view that there exists some ideal equilibrium towards which all prices are drawn.
For we tend to treat technology as a residual in our models when in fact it is technology which drives all of the changes, the moves away from equilibrium, in the first place.