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Yes, you can.

A wiki page on the Fedora wiki details many different ways of installing from a USB stick.

The instructions for installing a ISO to a USB stick while running on Fedora are pretty simple:

# yum install livecd-tools

# livecd-iso-to-disk path-to/Fedora-16-i386-DVD.iso /dev/sdb1

Where /dev/sdb1 is your USB device.