Bernanke, Fed have few options as economy slows - Economy Watch

Bernanke, Fed have few options as economy slows - Economy Watch ;..  Another less aggressive bond-buying program, dubbed Operation Twist, is due to end this month although the Fed could extend or modify it.

So-called Fed “hawks,” like Fisher, worry about the potential for sparking inflation down the road if the Fed continues its highly aggressive easy-money policy.

Tony Crescenzi, a longtime Fed watcher and portfolio manager for bond giant Pimco, says Bernanke and fellow policymakers are likely to keep using the central bank’s “bully pulpit”  to signal their willingness to act if needed, despite the obstacles.

“I think as long as they convey that idea, that they will do more and that they are activists, whether or not they act it won’t be immediately consequential to markets,” he said.

One factor working in the favor of so-called “doves” like Evans, is that inflation does not seem to be a major threat right now, especially with oil prices tumbling.