Could you please expand a bit more on the long term effects of expanding the money supply?
Currently, they expanded the money supply past demand to accommodate the 2008 crisis and now we are caught in a liquidity trap. If the Fed now wants to stimulate the economy by lowering the interest rate though expanding the money supply they can't, because the interest rate is at the lower bound of 0%. They need to now use less effective and unconventional methods to affect the economy.
The more powerful tool for dealing with economic issues is fiscal policy, which is the domain of Congress, not the Fed. But Congress has largely failed to act, or acted counterproductively, for many years, and left the Fed and monetary policy to handle things that need Congress and fiscal policy to address. So, yes, the Fed's pretty much exhausted its tools, because its been forced to deal with a problem exclusively through monetary policy that should have been addressed through fiscal policy.