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The Federal Reserve stands ready to increase the size of its credit auctions beyond the current level of $150bn a month if required to combat stress in the money markets, said chairman Ben Bernanke. In a speech, he welcomed “some improvement in financing markets” but warned that “conditions in financial markets are still far from normal”. Separately, the FT reports that the Fed is reviewing the way it deals with asset price bubbles in the wake of the housing and credit bust, in a move that could see the central bank using regulation – or even interest rates – to fight unjustified increases. Top officials say they are open to changing the Fed’s strategy but have not reached any conclusions.