Can Our Hubristic Fed Erase Our Deficits Too?

The Federal Reserve Open Market Committee announced today the launch of a new monetary policy initiative called “Operation Zero Deficit,” a new $25 trillion program aimed at eliminating the federal deficit.

“Over the past few years we have learned that our unconventional monetary policies have enormous unintended consequences,” said Ben S. Bernanke, Chairman of the Federal Reserve. “Very positive ones, it turns out, in that the U.S. Treasury has earned a windfall from our securities purchases. We now believe we can expand our monetary programs to eliminate the federal deficit.”