"We're Prepared to Act as Needed" = FEDSPEAK for we're desperate and will do anything to preempt economic/market weakness to bail out wall street bankers and to prevent another democratic landslide in 2008. Same goes for China - 2008 is the year it gets a chance to showcase its power on the world stage thru the olymics - they too will do whatever necessary to prempt any economic/market weakness. Don't fight the feds.