US Federal Reserve chairman Ben Bernanke sees 'a period of sluggish growth' in the US economy followed by acceleration later this year, helped by interest rate cuts and a stimulus plan.
Speaking to a US Senate panel, Bernanke reiterated that the Fed was 'carefully evaluating' the economic situation and remains ready to act to guard against a downturn.
The remarks offered little new on the economic outlook but were the first by Bernanke since Congress approved and President Bush signed a $168 billion economic stimulus plan.
Bernanke told the Senate banking committee that the stimulus plan, which aims to boost consumer and business spending, would help lift economic growth later this year.
The Fed chief, repeating comments made by the Fed last month, appeared to be indicating that the central bank is open to further cuts in rates if needed.
The Fed has made a series of dramatic cuts in interest rates since September to bring the main US rate to 3% from 5.25%.
