Mike Konczal ends his post thus:
An objective bystander would say that if the taper is being read as tightening even though future expectations language is the same, it means that we should be throwing everything we have at the problem because everything is in play. That includes fiscal policy. As Woodford writes, “[t]he most obvious source of a boost to current aggregate demand that would not depend solely on expectational channels is ﬁscal stimulus.” We should be expanding, rather than contracting, the portfolio channel, while also avoiding the sequester and extending the payroll tax cut. Arguments, like Woodford’s, about the supremacy of any one approach tend to get knocked down by all the other concerns.
The expectations channel is being blocked in several ways, most importantly because there´s not a clear identifiable target on which everyone, including the Fed, can focus. “Throwing everything we have at the problem” unfortunately will not only not help solve it but will cause a lot of additional distracting noise. In fact, that´s been the story over the past few years.