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Yet despite the drastic drop in inflation and interest rates, credit markets remain locked up, bank loans remain hard to get, and consumers have all but stopped buying in the worst consumer recession in decades. New-construction starts on homes fell an astonishing 19 percent to a new all-time low last month, the Commerce Department reported Tuesday morning.

Mr. Bethune said he is not worried that the Fed is running out of ways to aid the economy.

“The Fed has plenty of ammunition available to bring down — borrowing costs and restore the normal operation of credit markets,” he said. “The Fed will expand its balance sheet further to support the commercial paper, securitized debt, and mortgage debt markets, and work actively to bring rates and spreads down across the yield curve.”

By flooding the economy and financial markets with dollars, the Fed’s extraordinary moves do not come without a hitch, however. Many investors believe that the Fed’s actions, in combination with a federal budget deficit headed toward $1 trillion or higher this year, will spawn a renewed bout of inflation once the economy gets going again.

“The sharp sell-off in the U.S. dollar over the past couple of weeks appears to have been at least partly related to concerns over the rapid expansion of the Fed’s balance sheet,” said David Woo, an analyst at Barclays Capital.