Bernanke: Economic outlook weaker

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Source: CNN

Fed chairman says financial crisis will dampen economy well into 2009 and hints at future rate cuts; says recent actions by Fed, Treasury should help economy recover.
By Chris Isidore, CNNMoney.com senior writer
Last Updated: October 7, 2008: 2:43 PM ET

NEW YORK (CNNMoney.com) -- Federal Reserve Chairman Ben Bernanke predicted that the global financial markets crisis is likely to restrain the economy well into next year and signaled that the Fed may be getting ready to cut interest rates ... In a speech before the National Association of Business Economics in Washington on Tuesday, Bernanke said the threat of inflation has receded recently, while the economy has continued to weaken. This could be interpreted as a sign that the central bank might be preparing to lower its key fed funds rate soon. "Overall, the combination of the incoming data and recent financial developments suggests that the outlook for economic growth has worsened and that the downside risks to growth have increased," he said ...

Read more: http://money.cnn.com/2008/10/07/news/economy/bernanke_speech/?postversion=2008100714

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Saying Outlook Has Worsened, Bernanke Hints at Cut
By DAVID STOUT and EDMUND L. ANDREWS
Published: October 7, 2008

... Mr. Bernanke hinted strongly that the Fed’s Board of Governors would probably lower interest rates at its next meeting, on Oct. 28 and Oct. 29. And he said that, however reluctantly, the Fed would continue to aggressively use all the tools it had to help ease the financial turmoil. “These are momentous steps,” he said, “but they are being taken to address a problem of historic dimensions.” Only a few weeks ago, the Fed’s official posture was that inflation was a serious concern ... Mr. Bernanke spoke hours after the Fed announced a new program to buy up companies’ unsecured debt ...

http://www.nytimes.com/2008/10/08/business/economy/08bernanke.html?hp


Fed Considers Plan to Buy Companies' Unsecured Debt
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=353108