Fed Watch: Drums beat for QE3?

You've got to hand it to the Wall Street Journal, which knows how to geek out on just about any economics issue.

They did it again today, brilliantly, with regard to the Federal Reserve and what it might be able to do right now to keep the troubled U.S. economy from slipping back into recession. 

With the debt debacle finally over, WSJ chief economics correspondent Jon Hilsenrath pointed a camera at three VIS (very important suits), who mumbled coherently and compellingly on Fed strategy — Donald Kohn, Vincent Reinhart and Brian Madigan, who happen to be the last three directors of the Fed’s monetary affairs committee.

The headline?

The Fed might need to consider a new round of securities purchases to help cope with slowing economic growth. 

More from GlobalPost: The Fed's $600 billion QE2: Love Boat or Titanic?

Here are the big takeaways from today's interview, though the video below is certainly worth watching in its entirety:

• There is a 20-40 percent chance that the U.S. will fall back into recession.
• Another round of quantitative easing (QE3) is back on the table, though the Fed's Open Market Committee remains divided on this point.
• The Fed still has some options to support the economy, but “they’re kind of limited."
• Yesterday's debt deal gets a thumbs down, as it adds "uncertainty over the path of fiscal policy, making it harder for the Fed to decide what to do with monetary policy."

But don't take my word for it.

Here's the entire video, in all of its sublime geekiness.