So one of the unasked questions is this: Mr. Chairman, where are the risks greater? Is it better for the Fed to buy more assets or for the federal government to run higher deficits and not cut spending now?
I strongly suspect that Fed policy is more wide open because fiscal policy for the past several year has been contractionary. And I believe the Fed will be forced to do more QE this year because of the sequester. I also think the risk is greater over at the Fed than it is on the fiscal side.
(Read More: We've Seen This 'Sequester' Movie Before)
That's likely why the Fed keeps hammering the fiscal issue. In a speech last month, Fed Vice Chair Janet Yellen suggests the opposite of what the consensus firmly believes: that government spending, rather than surging, has actually been falling and a drag on growth for most of this recovery.
"In the year following the end of the recession," Yellen said, "discretionary fiscal policy at the federal, state, and local levels boosted growth at roughly the same pace as in past recoveries… But instead of contributing to growth thereafter, discretionary fiscal policy this time has actually acted to restrain the recovery."
So whatever the effects of the sequester --- some say they will be worse than others --- add another one: more responsibility for the Fed to keep boosting aggregate demand with experimental policies. The irony, of course, is there's a lot of overlap among the camps who say the Fed should cutback QE and the camps clamoring for government spending cuts now.
(Read More: Time to End the 'Monetary Ritalin': Fed's Fisher )
By CNBC's Steve Liesman; Follow him on Twitter: