Bernanke says weak growth may prompt more rate cuts

0 Comments | AFP, February, 2008

WASHINGTON (AFP) — Federal Reserve chairman Ben Bernanke told Congress Wednesday that weak US economic growth may prompt the central bank is to cut short-term interest rates further if needed.

Bernanke cited "downside risks" to economic growth, but he said the central bank is prepared to take action if growth is threatened, despite heightened concerns about inflation.

"It is important to recognize that downside risks to growth remain," he said in remarks prepared for his semiannual economic report to Congress.

"The FOMC (Federal Open Market Committee) will be carefully evaluating incoming information bearing on the economic outlook and will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks."

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