We’re failing in our mandate to deliver full employment; meanwhile, inflation is below target; therefore, we’ve decided to do nothing.

Oh, and why does the Fed keep saying that inflation expectations are stable? Here’s the five-year breakeven rate, the difference in yields between ordinary 5-year bonds and inflation-protected bonds:

Last winter, the market briefly thought the Fed might hit its target inflation rate; since then it has been saying, in effect, that inflation will stay too low for a long time. And based on what we know about prolonged periods of economic weakness, the market is probably too optimistic.

What Atrios said.