“Fed will do what it takes,” declared Narayana Kocherlakota, President of the Federal Reserve Bank of Minneapolis and member of the Federal Open Market Committee. In a speech today he stated, “Doing whatever it takes … will mean that the FOMC is willing to continue to use the unconventional monetary policy tools that it has employed in the past few years. Indeed, it will mean that the FOMC is willing to use any of its congressionally authorized tools to achieve the goal of higher employment, no matter how unconventional those tools might be…

Moreover, doing whatever it takes will mean keeping a historically unusual amount of monetary stimulus in place—and possibly providing more stimulus—even as: Interest rates remain near historic lows.”