The Federal Reserve will cease to exist within 25 years, along with any other institution that fail to recognize risks tied to their actions, says economist and author Nassim Taleb.

Federal Reserve officials failed to foresee the recent economic crisis and ensuing recession, even thought risks tied to the housing lending policies were apparent prior to the crisis.

In fact, the Fed isn't alone.

"A million people on this planet call themselves economists" these days but they fail to recognize the risks associated with their actions, including excessive borrowing with the aim of near-term economic growth, Taleb tells the Washington Ideas Forum.

"The Romans had a saying: 'The grandchildren should not bear the debt of the grandparents,'" Taleb says.

In the future, institutions that aren't capable of recognizing risks attached to their actions will disappear and be replaced.

"The Fed probably will be gone 25 years from now," Taleb says.

The Federal Reserve is presently buying debt from private banks in order to spur those banks into lending more fuel economic growth.

While critics say such policies weaken the dollar and adds to the country's mounting debt, monetary policy authorities say the program is needed to lower unemployment rates.

"Cutting off an easing program is a step in the direction of tightening," Fed Governor and Gramley senior economic adviser with Potomac Research Group Lyle Gramley tells Bloomberg.

"And you’d be doing it in the context of a financial market that’s pushing up long-term rates already."