The Federal Reserve, through its purchases of Treasury securities and its refunding of all of its profits to the Treasury, enables the government to continue running irresponsible budget deficits, says University of Georgia economist Jeffrey Dorfman.

Until January, the Fed was buying $45 billion of Treasurys per month as part of its quantitative easing. Now it's $35 billion a month. That buying helps the government sell its debt at a lower interest rate, Dorfman notes on Forbes.com.

As a result, the government can continue to issue debt without a conscience, Dorfman says.

Editor’s Note: These 38 Dates Are Key to Bagging $313,038

"Making the enabling behavior even worse, the Federal Reserve refunds its operating profit to the U.S. Treasury, a total of over $77 billion last year," he writes.

"The Federal Reserve’s actions introduce a form of moral hazard, encouraging risky behavior by the federal government in the form of extra spending and borrowing," Dorfman says. That doesn't exactly jibe with the Fed's mandate to control inflation and boost employment, he says.

"Out of control government spending is hurting the economy. . . . By enabling such reckless spending, the Fed is contributing to the problem."

Meanwhile, Fed Chair Janet Yellen said this week that the economy still isn't up to speed.

"Too many Americans still can’t find a job or are forced to work part time,” she said at her ceremonial swearing-in event, Bloomberg reports.

While the central bank’s mission of full employment and stable prices are clear, "it is equally clear that the economy continues to operate considerably short of these objectives," she said.

Editor’s Note: These 38 Dates Are Key to Bagging $313,038

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