Oh yeah, they know full well what "quantitative easing" is all about. You can pull the wool over the eyes of your own voters, but the Chinese first invented paper money centuries ago: they know as well as anyone how destructive it is to over-issue your fiat paper promises! You cannot pull the wool over their eyes! (Or the Germans, or the Argentines, or the Zimbabweans, or...)
Maybe there are some "mild deflationary" effects in the system right now. But there is rocket fuel stored up in the basement, right below the engines of the economy. The very second people no longer think there are still deflationary concerns... THAAAAAR SHE BLOOOOOWS!!!
I wouldn't mind betting that the Dallas Fed is actually being fairly conservative when they say they consider the unfunded public liabilities of the USA to be in excess of $99Trillion. And they are set to get a lot worse in the future unless the course is altered radically. You should know right now, if you didn't already, that we in the UK have highly similar problems deferred for the future that are not being addressed.
One thing I KNOW though, Mr Fisher at the Dallas Fed is certainly not stupid. "This situation is of your own creation. When you berate your representatives or senators or presidents for the mess we are in, you are really berating yourself. You elect them." He's certainly got that right. And it applies equally in the UK.