Has the Fed Fostered Fiscal Irresponsibility? Very likely, a purely rhetorical question!

Bad news, if confirmed! Clearly the Federal Reserve acted irresponsible accumulating so much federal debt since about the beginning of the millenium!

How much has the Fed contributed to price inflation in the US in recent years given its outlandish buying of government debt?

I selected these two instructive charts below, because they seem to illustrate what is wrong with federal government deficits and debt in the US. Unfortunately, the history goes only back to 1990, too short for my taste!

Indeed, it appears that the Federal Reserve has recklessly acquired/financed too much federal government debt with the beginning of the new millenium. Very bad, requires immediate correction by President Trump!

The analysis argues for a "fiscal policy that is not associated with automatic stabilizers (i.e., programs that automatically adjust tax or spending programs without changes in law or regulation to offset economic conditions)". This is certainly one of the accepted solutions presented in  textbooks of macroeconomics. Another technical term used in this analysis is "quantitative easing" in response to macroeconomic shocks by the central bank.

Caveat: I did not have the time to read this economic analysis.

Has the Fed Fostered Fiscal Irresponsibility? - EPIC for America "Evidence suggests that deficits are higher after economic shocks when the Federal Reserve buys government debt."

Unfortunately, the usefulness of this second chart is somewhat diminished, because it shows the percentage relative to public debt overall, but public debt holding increased dramatically as the first chart above shows. But make no mistake, a Fed holding of over 15% is way too much!