In most westerns good cowboys usually have few more bullets comparing to their bad friends. Sometimes a bad guy just can’t fire when he must.

Our friendly Feds are definitely good guys so they should have plenty of bullets, but not infinite. It could be a little bit early, but let count how many bullets they already fired:

  • Decreased the spread between Fed funds and discount rate (1)
  • Relaxed reserve standards (1)
  • Decreased Fed funds rate by 75bp (3)

Total is 5. The bullets left are another 350bp (14 more bullets). I don’t think they will dare to drop rates below 1%, that will be very politically incorrect.

So they already fired 5 bullets out of 19. Bad guys are still alive and firing back