Fed's 'U-Turn' on Policy Is a Prudent Change of Course, Dartmouth's Levin Says

The video discusses the economic changes over the past six months, highlighting zero net growth in core retail sales. It examines the Federal Reserve's response to these trends, noting a shift away from concerns of economic overheating. The Fed's balance sheet and its implications for future economic downturns are also analyzed, questioning the tools available for future interventions.

What implications does the current balance sheet have for the Fed's preparedness for another downturn?

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What tools might the Fed consider using in the event of another economic downturn?

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