THE TELEGRAPH: Federal Reserve chairman Ben Bernanke hinted at the prospect of further interest rate cuts as he admitted that the US economy is facing attack on a number of flanks.
Mr Bernanke, head of America's central bank, said the Fed would do whatever it needed to do to prevent the American economy from being hurt yet further by the combined effects of the declining housing market and the illiquid credit markets.
In a speech followed by answers to questions from members of the House of Representatives Financial Services Committee, Mr Bernanke said keeping downside risks to growth in check were more important than keeping a lid on inflation.
He said the Fed "will be carefully evaluating incoming information and will act as needed to support growth and to provide adequate insurance against downside risks". US fed chief Bernanke hints at more rate cuts >>> By James Quinn, Wall Street Correspondent
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