The FED can't do anything. We've been overspending, not living within our income, and that's why the dollar is in the tank and oil is sky high. Certainly the gov't has been overspending and with the subprime lunacy, many people also over spent. The gov't can spend it's way out of debt (low interest rates), but only with the cost of inflation and a still lower dollar. When people run out of money which the price of gasoline assures, they use the old credit card and when that loads up and the banks call them on it, both go broke.
The FED helped to cause the problem with ridiculously low interest rates (Greenspan) like 1%, but it can do little to fix it.
However, those still with money, like the Arabs, the Russians, etc. will buy RE on the cheap and help provide a base for REITs...I think or I hope.