Fmr. Fed Pres.: ‘We Injected Cocaine and Heroin into the System’ to Create Wealth Effect

What's driven the rally on Wall Street since 2008? According to the former president of the Dallas Federal Reserve, Richard Fisher, it's purely the "cocaine and heroin" the Fed "injected" into markets through multiple rounds of quantitative easing.

Since the taping of QE, Fisher says, "we're maintaining on Ritalin."

Yet despite the rising asset prices, CNBC's Sarah Eisen noted QE produced no noticeable wealth effect on Main St.

"It just took longer and it took longer because we have absolutely feckless fiscal authorities, the Congress and the president of the United States," Fisher replied. 

The former central banker conceded the Fed is essentially powerless should markets crash again.