Bernanke says weak growth may prompt fresh rate cuts

0 Comments | AFP, February, 2008

WASHINGTON, Feb 27, 2008 (AFP) — Federal Reserve chairman Ben Bernanke told Congress on Wednesday that weak US economic growth may prompt the central bank to cut interest rates further to ward off a severe downturn.

Bernanke said "downside risks" to growth were buffeting the US economy and stressed the Fed was ready to implement fresh rate cuts if economic momentum is threatened, despite heightened inflation worries.

"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," America's top central banker said.

The Fed chairman spoke as he delivered the central bank's semiannual...