For all the talk of a radical shift in central banking policy, from the permanent use of negative rates to printing "helicopter money," Federal Reserve Chair Janet Yellen appears to believe she can tackle any downturn using the tools currently at her disposal.

Speaking in Jackson Hole, Wyoming, on Friday after a Fed policymaker and other economists proposed a radical overhaul of central banking, Yellen argued that bond purchases, the ability to pay interest on excess reserves and forward guidance would be enough to combat any downturn.

"Our current toolkit proved effective last December" when the Fed raised rates, Yellen said in a speech in which she firmed up expectations of a second rate rise from the Fed, possibly as soon as September. "In an environment of superabundant reserves, the FOMC raised the effective federal funds rate ... by the desired amount, and we have since maintained the federal funds rate in its target range."