Bernanke at the Fed Destroys What's Left of the Dollar
Fed Chief Talks of 'Decisive' Action Addressing Slump, Bernanke Signals Another Rate Cut
By Neil Irwin Washington Post Staff Writer Friday, January 11, 2008; A01
Federal Reserve Chairman Ben S. Bernanke yesterday signaled that the central bank will cut interest rates aggressively to try to prevent a serious economic downturn, using unusually direct and forceful language.
In the past two weeks, new evidence has emerged that the United States is at risk of entering a recession. Just yesterday the nation's largest retail chains reported weak December sales, and credit card companies American Express and Capital One said they are seeing more unpaid bills.
In a speech in Washington, Bernanke said fed policymakers "must remain exceptionally alert and flexible, prepared to act in a decisive and timely manner and, in particular, to counter any adverse dynamics that might threaten economic or financial stability."