What Might Make the Fed Flinch?

The economy is finally moving in a better direction, however it is growing very slowly. The Fed is put into a tough position because Ben Bernanke said that he would not hesitate to offer more support if the economy did not improve, but nothing was said about what would happen if it was growing very slowly. The economy is currently in a "growth recession." This means that while the economy is growing, unemployment is rising. The Fed is put in a difficult position as far as how to aid the economy and factors such as the tax cuts are something over which they are not in control.