I do not believe that the Fed has 'given up' on the real economy. They see reality through the prism of the banking system and their circle of friends and associates, mostly laboring in the 'unreal world' of the academy, government, and the Banks. They tend to diminish their own culpability and shift the problems they are creating to the 'fiscal side' of the house, the dysfunctional government. They do have a point, but they are mostly moral cowards and courtiers to power and privilege, rationalizing their own servility.
