Automatic fiscal stabilizers help moderate economic fluctuations. The contribution discretionary fiscal policy can make in combating economic recessions is more debatable. The long lags that typically characterize major changes in fiscal policy weaken the role discretionary policy can play during the relatively short recessions the U.S. has experienced. In some cases, the direct impact of current fiscal spending and taxation may be reduced or even offset as households and firms react to the expectation of future fiscal actions. While the situation would differ should the U.S. economy suffer a major economic downturn or should the Federal Reserve’s benchmark interest rate reach zero, monetary policy and automatic fiscal stabilizers remain the first line of defense for ensuring short-run economic stability.