Greg Ip of The Economist (formerly the Fed’s “mouthpiece” at the Wall Street Journal) explains what Fed Chief Ben Bernanke meant yesterday when he said the U.S. economy needs “highly accommodative monetary policy … for the foreseeable future.”

Ip says, basically, that markets got it wrong again in that Bernanke was saying the same thing as he did back in May when the “tapering” talk started – that markets continue to confuse interest rate policy with quantitative easing.