Update: Matt Yglesias takes on the subject and concludes:
Now maybe Fed officials are confused or lying or even fooling themselves in an effort to evade accountability. But this is what they say is going on, it’s a view they’ve articulated for years, and it’s a view that they’ve refined as time has gone on.Believers in full offset owe us a clearer account of why we should ignore the Fed’s testimony on this.
The reason to ignore the Fed´s testimony is very straightforward. History is full of examples of the Fed denying responsability for any “less than desirable” outcome.