This is a direct quote from Joseph Smith in his book, "Lectures on Faith". If you wish to read the chapter associated with this quote for the purpose of putting TFC's statement in context, here is a link:
Look about 3/4 down the page at [Lec 1:9]
From what I understand, the definition of faith as put forth by TFC and Joseph Smith has expanded to include the traditional meaning of faith, as Rand saw it, and the cause of anything we do in life. In other words, Rearden had faith that he would be able to create Rearden Metal. Because he did create it, he must have acted on faith because the metal didn't exist before he created it. So it's all encompassing. Again, this is my impression and I don't claim to speak for TFC.
So, if all action is based on faith, then they might as well use the word reason. It would fit just as well. The definition he's proposing does not match the usage in practice or theory. I hope I am wrong, but it appears as if TFC is simply expanding the definition so it fits into his theology.
I can't wait to hear what he has to say.