It’s no surprise that Congress has failed the American people, given the radical loonies who now hold sway in the House of Representatives. But those who had been hoping for help from the Federal Reserve were mistaken in that hope. It projects unemployment to remain above 7% through 2013, and decides it won’t do anything about it. Krugman:

the Fed agrees that something should be done to greatly increase demand.

But it washes its hands of the problem, even though Bernanke and his colleagues are well aware that nobody else will act.

I’m aware that there are doubts about how much the Fed could accomplish; I share those doubts. But that’s no reason not to try.

This display of passivity is awesome. And it’s shameful.

It’s beyond shameful, Professor. It’s a complete abdication of responsibility, and it condemns millions of Americans to misery for several more years to come.