The Fed heads came out in full force this week to try and retract the previous statements of Bernanke on the coming taper. This was due to the horror that took place in the global markets following Bernanke's testimony which we discussed in Markets Rocked Around The World.
As Jim Grant says in the video below, "the Fed didn't like what they saw and they are doing their best to put in back in the box." What they saw was the coming reality of what will occur when these artificial markets unwind and come back to reality. This will come if the Fed and central banks around the world try to get ahead of the curve and remove themselves from the markets (unlikely), or in the form of total chaos when the markets just over power the central banks.
The truth is that the Fed has no idea what they are doing because there are no academic text books available to provide a historical precedent on the current global financial environment. They are flying through a storm with no concept of what is coming around the corner, and their only solution is to just step on the gas full throttle and close their eyes.