Fed Indicates That Fed May Consider Ability To Act When Acting

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It almost feels like Greenspan is back.

"Although conventional interest rate policy is constrained by the fact that nominal interest rates cannot fall below zero, the second arrow in the Federal Reserve's quiver -- the provision of liquidity -- remains effective," Mr. Bernanke said.

Bernanke: More Rate Cuts 'Certainly Feasible' [The Wall Street Journal]