What Is the Federal Reserve Doing?

From Chris Hayes:

Twitter / Christopher Hayes: @justicegorilla the econom ...: @justicegorilla the economy is like a burning house. The Fed is the fireman. They're watching the house burn so they can conserve water.

We are going to have to have a talk soon: is the economy experiencing a flood and is the Fed acting like a fire department? Or is the economy on fire and the Fed refusing to turn on the hoses?