The Fed could review options if economy worsens.
Three options:
- One would be changes to language.
- Could lower interest rate paid on reserves
- Could hold on to assets and not let them run off or could buy more assets.
Fed evaluation alternatives but action not needed at moment. Bernanke seemed reluctant to lay out the case for further easing, saying policy is already very stimulative.
He has a helicopter but he does not want to warm up the turbines just yet…
Print this one out and save it.
