Boston Fed president Eric Rosengren, “with a straight face” talks about how the FED can affect the economy with nominal interest rates at zero:

I’ve called this talk “How Should Monetary Policy Respond to a Slow Recovery?” My answer to that question is: vigorously, creatively, thoughtfully, and persistently, as long as we have options at our disposal. And we do have options, despite having pushed short-term rates to the zero lower bound.

We think the FED’s options have been whittled away like the Black Knight’s in the Monty Python Movie: