Benchmark

These Are the Fed's Three Weapons If the Economy Falters

Economists say the policy options are weak or dangerous

Federal Reserve Chair Janet Yellen.

Photographer: Andrew Harrer
Lock
This article is for subscribers only.

The Federal Reserve Board's army of economists are the ultimate umbrella people: they prepare for rain on sunny days.

QuickTake Forward Guidance

Even though no Federal Open Market Committee member has forecast a recession in the next three years, a shaky global environment has clouded the U.S. economic outlook. With the central bank's main policy rate stuck at zero since December 2008, that means Fed staff is probably already mulling other ways to stimulate growth.