Fed to stick with current monetary toolkit

When the next recession hits the US economy, expect more of the same from the Federal Reserve. From Bloomberg:

Faced with disappointing growth after years of ultra-low interest rates, Federal Reserve Chair Janet Yellen and her peers who met this weekend in Jackson Hole, Wyoming, re-affirmed their belief in power of monetary policy to stop economies from slipping into deflation. They were less keen on academic proposals that included the abolition of cash, raising their inflation targets, or keeping permanently large balance sheets.

However, Fed officials did recommend more help from the fiscal side.

During the meeting Yellen and three regional Fed bank presidents -- Robert Kaplan of Dallas, Eric Rosengren of Boston and Loretta Mester of Cleveland -- all urged fiscal policy makers to step up.

The Fed may need that help soon: ZeroHedge reports that JP Morgan sees a 37 percent chance of a recession in the next 12 months.