Is the Fed speaking out of both sides of its mouth?

Ben Bernanke spent a lot of time in front of Congress on Tuesday arguing that there’s a credit crisis out there, so why did the Fed recently shrink the float by $125 billion and why is it still resisting a consensus-recommended half-percent rate cut? Is it, as some paranoid people could suggest, a way to generate a need for an all-encompassing mega-bailout plan?

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