Promoting economic growth and employment is one of the Fed’s core missions, assigned to it by Congress in (I believe) 1974.
It was a triumph of Keynesian thought over Hayek’s beliefs; and despite all evidence to the contrary, most market participants still think that monetary policy is the magic that drives the business cycle.
Policy is supposed to moderate the boom-and-bust cycle and lift the economy out of recessions within a reasonable period.
On that point, monetary policy has failed miserably. We’re seven years out of recession and have yet to see GDP growth break above 3%.
The Fed’s answer in this week’s episode was to throw in the towel: Expect more of the same.