Since when were Treasury bonds "junk"?
As far as the feds job goes, I'm pretty sure that they are doing just that - their job.
I know that most people like to think that they are smarter than the people that currently run the fed, I mean if monetary policy were so easy, all the fed would need to do is read the message boards here and over at Alex Jones' website. There be scholars a plenty on the internetz.
I saw this video on CNBC yesterday, and all it seemed to do was instantly turn every Joe, John and Jack into monetary policy professors. Kind of irritating if you ask me. I'm no PHD in economics (unlike everyone else on the internet), but even I'm smart enough to recognize that this stuff isn't for intellectual lightweights. And educating yourself on these matters goes much further that reading wikipedia.
Sorry if my opinion of the federal reserve offends people, but I think that given the circumstances, the demand from industry for results, and the hideous political climate - the fed is doing the best it can.