With inflation low, the Fed has the flexibility to give the economy and the markets an immediate boost by reducing interest rates further, even after seven rate cuts already this year.
Having been squeezed for two decades by intense global competition, American industry is generally lean and nimble, and the banking system is healthy.
"We have a surplus in our budget and room to do near-term stimulus," said Alice Rivlin, a former vice chairwoman of the Federal Reserve who also directed the Congressional Budget Office.
"We have a strong banking system that's coming off a long period of doing very well," she said. "And we have monetary policy that's been aggressive but still has a lot of maneuvering room. We have a very resilient economy."
Given all the uncertainties about military action and critical economic factors like oil prices, the outlook at this point is foggy. But economists said they expect at least a quarter or two in which the economy is weaker than it looked as if it would be before Tuesday.
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