Answer: Because Versailles sucks
[T]he Fed expects unemployment to come down only very gradually — over 9 percent at the end of 2010, over 8 percent at the end of 2011, around 7 percent at the end of 2012. Inflation, meanwhile is expected to remain consistently below the Fed’s target.
Disastrously high unemployment, persisting years into the future, combined with inflation consistently below the Fed’s 2 percent target (and I’d argue both that the prediction is too high and that the target is too low).
Why is this considered OK, as opposed to desperately requiring action?
Because Versailles sucks.
Bear in mind that the predicted unemployment rate in 2012 — 2012! — is higher than the rate that let Bill Clinton run on “it’s the economy, stupid”.
But things are working out very well for them. So why should they worry about the peasants?
Look! Over there! Sarah Palin!
NOTE Versailles, of course, includes both parties, the press, the access bloggers, and the banksters who own them.