It appears that at least one Fed president has a handle on what is going on!

“I believe that were we to go down the path to further accommodation at this juncture, we would not simply be pushing on a string but would be viewed as an accomplice to the mischief that has become synonymous with Washington,” Fisher said in a speech at the University of St. Andrews in Scotland.

“There is a growing sense that we are unwittingly, or worse, deliberately, monetizing the wayward ways of Congress,” said Fisher, 63. He said investors are concerned the Fed has “already expanded its balance sheet to its stretching point.”

Fisher Cites Marketplace ‘Fear’ About Fed Balance Sheet
http://www.bloomberg.com/news/2012-06-05/fisher-cites-marketplace-fear-about-fed-balance-sheet.html