Chairman Ben Bernanke has said the US Federal Reserve must consider whether its current interest rate policy 'remains appropriate', amid increasing speculation about a need for rate cuts.
Bernanke, speaking to business economists in Washington, said the turmoil in markets and latest data suggest 'that the outlook for growth has worsened and that the downside risks to growth have increased.
'In light of these developments, the Federal Reserve will need to consider whether the current stance of policy remains appropriate,' he said.
The current base Fed rate is 2.0%.
Bernanke noted that financial systems in the US and much of the rest of world are 'under extraordinary stress', but expressed confidence that the steps being taken would eventually ease the crisis.
