Why Not Just Flush the Dollar down the Toilet and Get It over With?
February 14, 2008
Fed Chief Leaves Room for More Rate Cuts
WASHINGTON — Ben S. Bernanke, the chairman of the Federal Reserve Board, said on Thursday that the economic outlook had worsened, and he left room for the central bank to reduce interest rates yet again.
Testifying before the Senate Banking Committee, Mr. Bernanke said he was still expecting the economy to grow at a “sluggish” pace in the next few months and pick up speed later in the year.
While continuing to avoid predictions of a recession, the Fed chairman told lawmakers that Fed officials had lowered their forecasts and would be “carefully evaluating incoming information on the economic outlook and will act in a timely manger as needed to support growth.”
“The outlook for the economy has worsened in recent months, and the downside risks to growth have increased,” Mr. Bernanke said, noting that the growing losses in home mortgages have dragged down the broader credit markets and shaken the broader econo…