Prometheus 6

Fed Chief Talks of 'Decisive' Action
Addressing Slump, Bernanke Signals Another Rate Cut
By Neil Irwin
Washington Post Staff Writer
Friday, January 11, 2008; A01

Federal Reserve Chairman Ben S. Bernanke yesterday signaled that the central bank will cut interest rates aggressively to try to prevent a serious economic downturn, using unusually direct and forceful language.

In the past two weeks, new evidence has emerged that the United States is at risk of entering a recession. Just yesterday the nation's largest retail chains reported weak December sales, and credit card companies American Express and Capital One said they are seeing more unpaid bills.

In a speech in Washington, Bernanke said fed policymakers "must remain exceptionally alert and flexible, prepared to act in a decisive and timely manner and, in particular, to counter any adverse dynamics that might threaten economic or financial stability."