What the Fed Could Do

Alan Blinder:

The Fed Is Running Low on Ammo: You may have noticed that the complexion of the U.S. economy has turned a bit sallow of late.... Chairman Ben Bernanke has told the world that the Fed is not out of ammunition. It still has easing options, should it need to deploy them. The good news is that he's right. The bad news is that the Fed has already spent its most powerful ammunition; only the weak stuff is left.... Let's examine....

From exit to re-entry. The first easing...