Bernanke is out of tools that make any sense even to him.
Seriously, what can he do he has not already done? Given that $1.6 trillion in excess reserves did not do a damn thing to spur lending or job creation, what possible good can another $1 trillion do?
The answer is none.
Yet Monetarist fools want more QE. Monetarist fools are also hoping for "Operation Twist", technically not QE but an attempt to drive down long-term rates by buying the long end of the curve and selling the short end.
Yield Curve Table
Federal Reserve Chairman Ben S. Bernanke said the central bank still has tools to stimulate the economy without providing details or signaling when or whether policy makers might deploy them.Translation: "I've got an invisible bazooka in my pocket and I will use it when I have to."
“In addition to refining our forward guidance, the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus,” Bernanke said in a speech today to central bankers and economists gathered at an annual forum in Jackson Hole, Wyoming. He said a second day has been added to the next policy meeting in September to “allow a fuller discussion” of the economy and the Fed’s possible response.
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