video transcript

With the economy during the stumble again the Fed may have to step in and do something else what can -- do actually it's toolkit. It's pretty extensive. The big hammer more QB war bond buying this is probably the most substantial school. Now most people think that it will do that but not until later this fall. Could -- do something else smaller between. The Fed could push back the gate and it promises to keep rates exceptionally low from the current 2014. Back to 2050. Now the Fed really wanted to tinker with its tools he could try something it hasn't done before it's been this suggestion that it could offer an incentive to land. Kind of like the Bank of England has done giving a discount rate to banks that showed -- -- lending money. Now there are things that the Fed could do that hasn't even talked about but that some people are suggesting might be useful for example nominal GDP targeting. That's where you decide you want the economy to grow at a certain level and you do what ever it takes to get there. Now there are other things that could do for example I'm more targeted tool cut the rate it pays banks on reserves held the -- Currently at 25 basis points if it could lower this rate two point 125 or even lower. There are some concerns and it's a small step but it might be useful what that means is that in addition for the big hammer quantitative easing. The Fed has a number of other instruments that can use. To repair the sick economy. Or.