Yet, pundits seem to think that monetary ease without the contribution of lower interest rates will be greater, not less.
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However, without an associated further decline in interest rate, the impact of further monetary ease will likely still be positive, but less so.
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Fortunately the U.S. does not yet suffer Japan's structural deadweights, but the Fed could still make the mistake of thinking that easing interest rates is the equivalent of monetary ease.
Three million fewer men and women are employed today than 2.5 years ago, when the Fed began an unprecedented era of monetary ease marked by zero interest rates and two rounds of massive, quantitative easing.
Some historians (including Milton Friedman and Anna Schwartz) blame the market crash of 2nd half 1937 (U.S. stock prices fell by 40%) and the Roosevelt recession on the Federal Reserve signaling from late 1936 that abnormal monetary ease would end (raising reserve requirements).
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These factors include: the European sovereign-debt markets in chaos threatening the viability of the euro, the budget deadlock in the U.S. Congress, Federal Reserve Chairman Ben Bernanke implying yet more monetary ease, rating agencies threatening a downgrade on U.S. debt and Middle East turmoil.
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"It does, however, potentially give the Monetary Policy Committee more flexibility to ease monetary policy further, " he added.
It is important to remember that the Fed did not ease monetary policy yesterday.
China's government will be reluctant to ease monetary or fiscal policy while inflation remains high.
ECB's target range mean that it is not ready to ease monetary policy just yet.
Additionally, slowing growth may support expectations that the Chinese government will ease monetary policy.
Previously, the central bank had been unable to ease monetary policy due to inflation.
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Dar es Salaam used fiscal stimulus and loosened monetary policy to ease the impact of the global recession.
ECB, unlike the Fed, may not ease monetary policy as fast as it should over the coming year.
Many investors expect the European Central Bank to ease monetary policy this week.
Goldman Sachs forecasts that inflation will fall to 1.5% in 2009, which gives the central bank scope to ease monetary policy.
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Developing countries do have scope to ease monetary policy and boost growth.
There are certainly compelling reasons for the ECB to ease monetary policy.
On July 5th, after The Economist had gone to press, both the ECB and the Bank of England were expected to ease monetary policy.
Some fear that even if the Fed did ease monetary policy to restore order, lingering inflation fears would push up long-term rates, compounding America's mortgage mess.
Central bankers, particularly at the Fed but also in Europe, "seem to be acting as if they have unlimited flexibility to ease monetary policy, " he says.
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Goldman Sachs said it expects the FOMC to ease monetary policy in response to weaker economic reports and increased downside risks from the intensifying crisis in Europe.
Mr Kuroda, who has long been a critic of the central bank's policies, is a supporter of Mr Abe's plan to ease monetary policy and increase government spending.
Many thought the Australian central bank would ease monetary policy.
Japan's Nikkei Stock Average climbed 2% to the highest level seen since July 2008 as markets reacted to the Bank of Japan's new aggressive efforts to ease monetary policy.
If the Bank of Japan, for instance, were to persist with its refusal to ease monetary policy even as America's economy stalled, the world economy would take a nasty tumble.
While much of the developed world was either cutting rates or buying bonds to further ease monetary policy, vast swaths of the developing world were increasing rates to rein in inflation.
Mr Kuroda's comments echoed the election promises made by Mr Abe that the central bank needs to do more to convince markets that it will take steps to ease monetary policy.
But even if the Fed does not make a stimulus move on Thursday, the majority of the market place believes the U.S. central bank will act to ease monetary policy in the coming weeks.
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