It’s not just the Fed, check out this article from Business Week:
Short-term rates for borrowing in euros in the forwards market are the cheapest relative to loans in dollars since September. The 50 percent collapse in that spread this month signals investors are betting the European Central Bank will keep its target interest rate at a record low, sacrificing euro strength to prevent deficit cutting by debt-laden economies in the region from stymieing growth.
OK all you Keynesian macro modelers; raise your hand if you included the likely central bank reaction function in your fiscal multiplier estimates.
That’s what I thought.