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Fed’s new stance acknowledges reality

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Wow. Catch you up, first, in case you spent the week inadvertently locked in an airliner commode. The 10-year T-note at one point traded at 2.03 percent, down by one-third in three weeks, the largest percentage move ever.Standard & Poor's might have studied Kafka: "In a battle between you and the world, bet on the world." Dear S&P: If you want to write a letter to the editor critical of U.S. politics, fine. If you want respect as a credit-rater, act like it.The Fed's Open Market Committee made one of the three most important announcements in its history (the other two: former Fed Chair Paul Volcker's decision, in October 1979, to let interest rates go as high as necessary to defeat inflation; and the QE1 announcement at Thanksgiving 2008). Aside from the conditional commitment to keep the Fed funds rate at zero for two more years, Fed Chair Ben Bernanke settled hash within the Fed.All spring and summer, the Fed said that temporary factors (gasoline and Japan) had slow...