Bernanke's Bluntness Assures a Big Cut

Thursday, Jan. 10, 2008 3:50 p.m. EST CHICAGO -- Weeks ahead of a key policy-setting meeting, Federal Reserve Chairman Ben Bernanke Thursday left little doubt the central bank will slash interest rates to bolster the sagging economy.

Speaking in Washington, Bernanke was unexpectedly blunt about the U.S. economy's worsening outlook, while adding that the Fed is "not currently" forecasting a recession.

He assured markets that the Fed stands ready to take "substantive additional action as needed" to support growth and would "act in a decisive and timely manner."

"Bernanke's comments will be regarded as unequivocally dovish," said Marc Chandler, senior currency strategist at Brown Brothers Harriman in New York.

Story Continues Below

http://moneynews.newsmax.com/money/archives/st/2008/1/10/155209.cfm?s=st