The chairman of the US Federal Reserve has said more US interest rate cuts may be needed to help shore up economic growth.
Ben Bernanke also said the outlook for US economic growth in the year ahead had 'worsened' because of the housing slump and rising oil prices.
'In light of recent changes in the outlook for and the risks to growth, additional policy easing may be necessary,' Bernanke said, according to the transcript of a speech he is due to deliver on the economic outlook.
The Fed is scheduled to hold a two-day meeting on interest rates on January 29-30, and some economists expect the central bank to cut its key rate, which is currently at 4.25%.
'The financial situation remains fragile, and many markets remain impaired,' Bernanke said, referring to the credit crunch and mortgage investment losses endured by major banks.
