Fed plans another rate cut before Christmas, probably 0.5 %

Due to the deteriorating retail sales and rising unemployment, Bernake hints at another rate cut before Christmas.
European Central Bank President Jean-Claude Trichet calls the current measures a work in porogress. The Bank of England and the ECB have some room for a 50% basis points rate cut before Christmas. But Bernanke is a a bit running out of steam to manœver, and a 0,25% base rate cut won't help very much.
Are we going to see a repeat of the Bank of Japan scenario, a deflation?

Bernanke leaves door open to another rate cut, warns markets remain under 'severe strain'