Banks play 'hot potato' with loans

Commentary: Despite public outcry over 'bailouts,' help is needed

For the first time since 2002, the Fed said that inflation is uncomfortably below target (any time below 1 percent, some sectors of the economy are already in deflation), and the Fed "… is prepared to provide additional accommodation if needed."

Credit markets took the Fed’s post-meeting announcement on Tuesday and ran a bit too far: the 10-year Treasury note stone-dropped to 2.5 percent, today back to 2.6 percent, but mortgages were little changed.

Given the deep policy division at the Fed (the do-nothings paralyzing the do-somethings), I think the Fed will need to see weaker data to resume quantitative easing.