I meant that figuratively, altho it may very well be true literally if not formally in the not distant future. First off the Federal Reserve is the singular agency "within" the US government (they are actually owned by and pay dividends to 1700 member banks and are nearly autonomous beyond the pres appointing their chairman) tasked with the job of managing the economy. Tasked with maintaining constant growth sans excesses in inflation and sans any deflation whatsoever. The Fed assumes this task primarily because it gives them the power to target interest rates which serves nobody more than it does their own stockholder constituents, the banks. Predictable, very predictable interest rates enable banks to make money by slicing margins as thin as a razor if need be to still reap dividends. Wild and crazy interest rates inhibit lending and opportunities for bank profiteering. The Fed being owned by, and serving the banks primary need as a core part of it's mission statement is the proverbial adage of the fox guarding the hen house as much as any thing ever as. But back on topic. The Fed is out of ammo. They are powerless to do the task of which they were created to attend: Analysis: The uncomfortable mathematics of monetary policy | Reuters I would post much more of the article if I could, but board rules prohibit it: Ok, I will post this quote as well: The article goes on to point out that altho the Fed COULD do a lot more they won't and it wouldn't do much good if they did. The reason why is because all the fed can do is influence how much money people and corps borrow. That's the whole scope of their management toolbox. Tinkering with the amount of credit issued. Tinkering with the amount of new debt created. The system has failed. We need to divorce ourselves from an econ system that begins and ends with debt as the driver of the economy and fall head over heels in love with a new econ system that revolves around a durable currency that is not dependent on ever increasing debt, constant growth or the federal reserve running our economy on behalf of (and for the benefit of) 1700 of the nation's banks. We need this because the Federal Reserve is out of ammo and can no longer address the real economic woes of our nation. The Fed saved the banks, but they can't save the rest of and the real economy. they were never designed or intended to do so.