Fed Already Floats Idea of Resumed QE

``Curiously, before Powell's remarks were dropped, both Dudley and Rosengren were on the tape this morning talking super dovish about QE as "useful to have in the toolkit for those times when the short-term interest rate tool may not be available," adding that The Fed is "quite likely" to require large-scale asset purchases again because real rates will remain low due to slow productivity and labor-force growth. And adding that "if LSAPs are indeed not effective, then the Fed may need to take other measures."''