Federal Reserve chairman Ben Bernanke signaled Tuesday that a cut in interest rates may turn into a reality as a result of the current economic landscape and a better inflation outlook.
“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,” Bernanke said at the National Association for Business Economics Annual Meeting in Washington.
“At the same time, the outlook for inflation has improved somewhat, though it remains uncertain. In light of these developments, the Federal Reserve will need to consider whether the current stance of policy remains appropriate."
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