"I fear that's what we're headed into" here in America, warns the former Treasury secretary.
The libertarian describes the central bank interest rate cuts and President Trump's China tariffs as interventionist moves "far removed from capitalism."
Key issues will be how ambitious the program will be, and how the market will perceive what the Fed is doing.
Rates on long-dated U.S. sovereign bonds were higher on Wednesday as investors digested a summary of the Federal Reserve's meeting last month.
Fed Chairman Jerome Powell described the U.S. economy as being solid, noting the central bank must do what it can to keep it there.
The Federal Reserve's asset purchases likely will total $315 billion over the next six months, according to Morgan Stanley.
The Fed will be conducting operations that look and sound a lot like what it did to pull the economy out of the financial crisis.
Trump has called Chairman Jerome Powell "clueless" and Fed officials "boneheads."
President Trump's criticism of Fed Chairman Jerome Powell has been more public because of Twitter, says economist Alan Blinder.
The responsibility to boost economic activity is not the central bank's alone, said Benjamin Diokno, governor of the Philippine central bank.
The Federal Reserve has calmed the overnight funding market and brought its fed funds rate back in line with its target.
The Dow Jones Industrial Average gave up a 100-point gain and the S&P 500 held steady just under its all-time high on Thursday.
Powell said on Wednesday that the Fed may have to resume regular balance sheet growth to help ease money markets.
Jerome Powell pledged that the central bank would engage in a "sequence" of interest rate cuts if conditions warrant, but he doesn't see that as necessary now.
For everyday Americans, the Federal Reserve's decision to cut rates could mean cheaper loans. At the same time, consumers will earn less interest on their savings.
J.P. Morgan Chase chief Dimon says he doesn't think the U.S. is close to recession and called the Fed's Powell "a quality human."
U.S. stock futures point to a modestly lower Wednesday morning open on Wall Street ahead of what the markets in the afternoon expect to be the Fed's second interest rate cut this year.
U.S. debt yields fell ahead of what investors across Wall Street expected will be the Federal Reserve's second move to cut rates in 2019.