Such measures might include, among others, increased purchases of longer-term government bonds by the Fed, an announced program of oversupplying bank reserves, term lending through the discount window at very low rates, and the issuance of options to borrow from the Fed at low rates.
I am sure that the FOMC will release more specific information if and when the need for such approaches appears to be closer on the horizon. I motivated today’s talk by reference to the May 6 statement. Let me end the talk by discussing the role of such statements in both traditional and nontraditional monetary policy.