Subject: Re: Krugman on the Fed
I think most of you are assigning way too much importance/power/effectiveness to the Federal Reserve's current toolkit (Fed Funds rate and Balance sheet/QE/QT being the primary current tools).

If fed funds drops by 2% tomorrow, there is no reason to believe that would increase inflation or stimulate the economy.

From my seat, most of the Federal Reserve's tools are just as likely to have the opposite effect as the intended effect.