The Federal Reserve's massive easing program has hurt the economy and financial markets alike, says David Malpass, a former Treasury Department official who is now president of research firm Encima Global.

"[T]he Fed's low rates and bond purchases damaged markets, hurt savers and channeled credit to the government at the expense of job creators," he writes in The Wall Street Journal. "It's a zero-sum process that should be stopped because of the bad effect on growth and jobs."

The Fed has added almost $3 trillion to its balance sheet since it began quantitative easing (QE) five years ago and is now buying $85 billion of Treasurys and mortgage-backed securities a month.

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The Fed's QE helped the economy initially. But in the end it hasn't solved much, Malpass says. "The problem is [still] the broader economy's poor performance in growth and jobs."

Washington seems to think that the economy and financial markets depend on Fed easing and deficit spending, he explains.

"This is the wrong lesson. More likely, past government excesses — trillions added to the national debt and the Fed's liabilities — lowered the growth rate. The economy and markets would adjust and be better off without them," Malpass writes.

'"[I]t should be clear that the Fed's unprecedented and far-reaching monetary policy has been a drag, not a stimulus."

As former Fed Vice Chairman Alan Blinder sees it, Malpass' complaints won't be heeded soon by the central bank.

"The market should understand that the Fed is very badly split," Blinder, now a Princeton University economist, tells CNBC.

"There are hawks, doves and even some super hawks. ... [But] the Bernanke side is winning."

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