The Fed has lost control of the markets and Wall Street economists, media analysts and most blog writers suffer from tragic and terminal mental disabilities.
Think about Long Term Capital. Remember that abortion? It was "outlier" black swan type market movements that sent LTCM to its grave. That's the kind of market movement we had in May with interest rates in the context of the kind of interest rate derivatives exposure that the banks have when there's an outlier move like that. There is no other explanation and this is why the Fed kept injecting money into the system that went directly to the banks cash account at the Fed even after Bernanke mumbled something about it being time to pull back on QE.
Here's how it works: the banks need that $2.3 trillion in cash to put up as collateral against their multi-trillion dollar market-to-market losses on their interest rate (and credit default) swaps. That keeps them in the game longer and extends the amount of time they have for a divine miracle to come along and save them from completely incinerating from a big nuclear derivatives melt-down. The fact that the Fed can't even pull back by a token amount tells us that the situation is still unstable and probably getting worse. You could see that I'm right in the expressions on Bernanke's face and in his eyes when he was giving his post-FOMC press conference. He's frightened and that's why he's leaving the Fed.