In response to a question about the tools available to the Fed,  Fed Chairman Bernanke said, "There are a range of possibilities. And I -- and I don't want to, you know, give any signal that we're choosing one among... The logical range includes different types of purchase programs. That could include treasuries or include treasuries and mortgage-backed securities. Those are the two things we're allowed to buy. We could also use our discount window for -- for lending purposes, but, you know, that's another possibility. We could use communications to talk about our future plans regarding rates or our balance sheet. And a possibility that we have discussed in the past is cutting the interest we pay on excess reserves."
 

STEVE LIESMAN: Some people think that 100 basis points discount rates over fed funds is normal. Is that right?

JEFFREY LACKER: Well, that's what we did when we- sort of configured the - the way to do back in 2002. And went to this- regime of- a normal spread above the target rate. But there's been some sentiment that it- it maybe ought to be 50- just to make it a more available, less costly- safety balance- for the banking system- in routine times. And I think the jury's out.