Economics
A New Paper Reveals the Fed's Policy Impotence If Another Recession Hits Soon
Fiscal policy and negative policy rates might be needed, says Citigroup Inc.
El-Erian: Federal Reserve Needs to Lead the Market
This article is for subscribers only.
Federal Reserve Board (FRB) officials are beset with fears they lack the policy tools to combat future cyclical shocks to the U.S. economy, an issue expected to be debated at the annual Jackson Hole summit later this week.
The historically low Federal funds rate, the central bank's still-large balance sheet, and the U.S. economy's failure to fully recover from the last crisis all potentially dent the firepower of conventional monetary policy tools should a recession hit the U.S. economy in the coming years.