Friday, January 11, 2008

Bernanke is ready for additional action to negate the worsening outlook for 2008

Are we going to see the US Fed cutting its rate by 50 basis points later this month?

From Bloomberg.
Federal Reserve Board Chairman Ben S. Bernanke said ``additional policy easing may well be necessary'' to offset ``downside risks'' to growth.``In light of the recent changes in the outlook for and the risks to growth, additional policy easing may well be necessary,'' Bernanke said in his first speech on the economy since the Fed's Dec. 11 meeting. ``We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks.''

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