We are rapidly approaching the moment whereby the risks of continued monetary support may outweigh the benefits. Several Fed governors, including Charlie Plosser, Jeffrey Lacker and Richard Fisher, seem to already agree with me. These Fed officials seem to understand that the longer we wait, the harder it will be to unwind.

The Federal Reserve announced a third round of quantitative easing Thursday afternoon, and it is big: A net $40 billion a month in additional purchases of mortgage-backed securities.