Fed has options for dealing with recession, Yellen says

If confronted by a prolonged recession, the Federal Reserve may increase its inflation target and buy a broader range of assets than it has targeted in the past, Chair Janet Yellen said. "Future policymakers might choose to consider some … tools that have been employed by other central banks, though adding them to our tool kit would require a very careful weighing of costs and benefits and, in some cases, could require legislation," she said.

Bloomberg (8/26),  Reuters (8/27),  The Wall Street Journal (tiered subscription model) (8/27)