Well, at this point everyone is expecting them to raise rates, so not raising would, in effect, be doing something.

About all they have left is more QE. My guess is that the next step in this bubble they've blown (along with the rest of the world's central banks) is massive deflation.

The fed is paying interest to the banks for excess reserves they have parked at the fed. If they lower the interest rate they're paying out on the excess reserves, banks might move some of that money out of the fed and into other investments.

At the moment, there's nothing that they need to do. A one-week drop of 15% in the stock market is not actually something that the Fed needs to fix.

I think they can safely do nothing and go along with the correction narrative, whether or not that's true.

> The answer (pains me to say it) is, if anything, government spending.

That's not something the Fed can do.

That's something Congress can (in theory) do, but hasn't shown much interest in doing.

> We have come to depend far too much on monetary stimulus relative to fiscal stimulus.

I don't think anyone has a preference for monetary stimulus so much as the fact that the only place where there are sufficient people with interest in stimulus to effect anything is at the Fed, where the only lever they have is monetary stimulus.