Re:How we will know when a recession is coming?
by dragonwriter on Wednesday September 11, 2019 @06:33PM
(#20945538)
> Can the Fed do that again
They've probably got more tools, as they've said that the foreign experience puts negative interest rates on the table as a realistic tool.
But, even if they can't, Congress could, in principal, step in with serious fiscal stimulus [0], which is less limited than the monetary tools available to the Fed. But they've been unreliable in the last few recessions, leaving the Fed holding the bag.
They've probably got more tools, as they've said that the foreign experience puts negative interest rates on the table as a realistic tool.
But, even if they can't, Congress could, in principal, step in with serious fiscal stimulus [0], which is less limited than the monetary tools available to the Fed. But they've been unreliable in the last few recessions, leaving the Fed holding the bag.