While the Great Recession ended in 2009, the unemployment rate did not drop down to pre-recession levels until 2015. Given the dual-mandate of the Fed, they are required to simulations act to pursue full employment, explaining the low rate until 2015.
I now agree that rates probably shouldn't have been cut as much earlier this year, but I thought it made sense at the time. Hindsight is 20:20, haha. It would be better now if they could have made a cut from 2.4 instead of 1.6, (thanks FRED).
I agree with your point that this is a supply shock and this is a case of changing demand, I still think it is the right play. The Fed has the opportunity to act quicker than Congress. Even if they can't solve the problem themselves, this action reduces barriers to do business and will likely make eventual fiscal and health policy more effective.
Good points all around, though. Glad to see economic knowledge on this sight.
Do you want legislative oversight of the Fed?
If that were the case, important policy maneuvers such as Paul Volcker 's anti-stagflation interest rate hike in the 1980s would never happen as no self-serving congressperson would want the blood on their hands for starting a recession when it really was needed.
Additionally, legislative nannying would cause monetary policy to take on the major problem in fiscal policy - congress takes a long time to get its act together. Even right now, the corona fiscal policy still hasn't been pushed through. Placing congress, comprised of members who do not necessarily have the same financial expertise of the members of the Board of Directors or the Chairmen of regional banks, seems like a bad idea from my point of view.
And one last thing, the rate the Fed targets is the Federal Funds rate, which is the rate that banks should lend to each other at for overnight loans. Loans involving the Fed use something called the Discount rate, which is usually around half a percent higher. It is a really low interest rate loan still, but the banks are also putting up 100% collateral that is also very liquid.
edit: clarified Paul Volcker's actions a bit to make my point clearer