I know of two policy channels through which to push back on recessions: monetary and fiscal. As I discuss in today’s WaPo, though who knows when the next downturn hits, we’re not ready.
Monetary policy–ie, the Fed’s main tool: its Fed funds rate (ffr)–is very unlikely to have time to reload. I think this is a pretty striking picture of the extent of ffr reductions in past cycles of monetary stimulus.
But there’s still fiscal policy, right?? See, Congress, US, under subheads: a) dysfunction/gridlock, b) denial of efficacy of fiscal stimulus, c) embrace of fiscal austerity.