What the Fed is afraid of
Neil Irwin extends Chris Hayes's farming analogy to offer the best explanation yet of why the Fed is reluctant to do new things to speed a slow recovery. This is a debate I have trouble adjudicating, but when you think about how bad the current moment really is, it's worth dwelling on the fact that the Fed's main powers are totally tapped out and further interventions would require the development of original and untested interventions. This isn't just a bad economy. It's a bad economy that's teetering on the edge of our political system and the central bank's ability to respond.
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