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| Version 0 | Version 1 |
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| Bernanke hints at more rate cuts | Bernanke hints at more rate cuts |
| (10 minutes later) | |
| US Federal Reserve chief Ben Bernanke has hinted that the central bank is prepared to cut interest rates further to help ease recession fears. | US Federal Reserve chief Ben Bernanke has hinted that the central bank is prepared to cut interest rates further to help ease recession fears. |
| In his semi-annual report to the US Congress, Mr Bernanke said the Fed would continue to "act in a timely manner as needed to support growth". | |
| Analysts said his comments increased the likelihood of another rate cut at the Fed's next meeting on 18 March. | Analysts said his comments increased the likelihood of another rate cut at the Fed's next meeting on 18 March. |
| US interest rates are currently at 3% after two major reductions in January. | US interest rates are currently at 3% after two major reductions in January. |
| 'Distinctly less favourable' | 'Distinctly less favourable' |
| Despite saying the Fed must continue to keep a close eye on inflation, Mr Bernanke said economic conditions had become "distinctly less favourable" and could get worse. | Despite saying the Fed must continue to keep a close eye on inflation, Mr Bernanke said economic conditions had become "distinctly less favourable" and could get worse. |
| "The risks include the possibilities that the housing market or labour market may deteriorate more than is currently anticipated and that credit conditions may tighten substantially further," he said. | "The risks include the possibilities that the housing market or labour market may deteriorate more than is currently anticipated and that credit conditions may tighten substantially further," he said. |
| Mr Bernanke's downbeat comments are the latest in a series of warnings he has given this year about the health of the US economy. | Mr Bernanke's downbeat comments are the latest in a series of warnings he has given this year about the health of the US economy. |
| Although he said inflation remained a worry, it is expected to go down as high energy and commodity prices recede. | Although he said inflation remained a worry, it is expected to go down as high energy and commodity prices recede. |