links for 2011-10-01

St. Louis Federal Reserve President James Bullard said the Fed is prepared to ease policy should the U.S. economy weaken, while keeping an eye on inflation risks.

“The Fed has potent tools at its disposal and is not now, or ever, out of ammunition,” Bullard said today in a speech in San Diego. “Should further weakness develop, monetary policy will need to respond appropriately,” he said, adding that “sluggish growth” leaves the economy vulnerable to “shocks.”

Eastman Kodak Co. (EK), the unprofitable 131-year-old camera maker, is weighing options including a bankruptcy filing because of concerns raised by possible bidders for its patent portfolio, said three people with direct knowledge of the process. The shares plunged.

Some potential buyers of the patents are reluctant to proceed with bids because a purchase may amount to a so-called fraudulent transfer if Kodak becomes insolvent, said the people, who asked not to be named because the talks are private.