Bernanke Hints at Hefty Interest Rate Cuts

Fed hopes to thwart troubled markets, unemployment

By Matt Cantor, Newser Staff

Posted Jan 10, 2008 1:30 PM CST

(Newser) – The Federal Reserve may make "substantive" cuts to interest rates later this month in the face of rising economic difficulties, Ben Bernanke said today. Citing troubled financial markets and rising unemployment, the Fed chairman implied that it might drop its target short-term interest rate by .5% from 4.25%. “We stand ready to take substantive additional action as needed to support growth,” Bernanke said.

With prices rising for food and energy, inflation is also a worry, Bernanke said during a speech in Washington that briefly moved stocks higher. "The demand for housing seems to have weakened further," he said, adding that "higher oil prices, lower equity prices, and softening home values seem likely to weigh on consumer spending as we move into 2008."

Traders, including Michael Raynor, foreground, work on the floor of the New York Stock Exchange Monday Jan. 7, 2008. Wall Street rebounded Monday amid speculation that the Federal Reserve will continue... (Associated Press)

Federal Reserve Chairman Ben Bernanke speaks at the 2007 Charlotte Chamber annual meeting in Charlotte, N.C. on Thursday, Nov. 29, 2007. Bernanke announced more likely interest rate cuts today in Washington.(AP... (Associated Press)

Federal Reserve Board Chairman Ben Bernanke discusses the economic outlook while testifying on Capitol Hill in Washington, Thursday, Nov. 8, 2007, before the Congressional Joint Economic Committee. Bernanke... (Associated Press)

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Bernanke Hints at Hefty Interest Rate Cuts

Fed hopes to thwart troubled markets, unemployment

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Bernanke Signals New Rate Cuts

Says central bank 'will act as needed' to further minimize economic risks

Inflation Spikes, Cut in Jeopardy

Fed may have hands tied, as CPI soars past expectations

Fed Cuts Key Rate by Half Point

Officials signal further cuts possible as overnight lending rate hits 3%

Fed Remains Open to More Rate Cuts

Minutes from last meeting display growing concern about markets

Fed Weighs Emergency Rate Cut

As economy deteriorates, inflation becomes less of a concern

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Bernanke Hints at Hefty Interest Rate Cuts

Fed hopes to thwart troubled markets, unemployment

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OTHER STORIES ON OUR RADAR

inflation • Ben Bernanke • Federal Reserve • US economy • short term interest rate • interest rate cut

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Bernanke Signals New Rate Cuts

Says central bank 'will act as needed' to further minimize economic risks

Inflation Spikes, Cut in Jeopardy

Fed may have hands tied, as CPI soars past expectations

Fed Cuts Key Rate by Half Point

Officials signal further cuts possible as overnight lending rate hits 3%

Fed Remains Open to More Rate Cuts

Minutes from last meeting display growing concern about markets

Fed Weighs Emergency Rate Cut

As economy deteriorates, inflation becomes less of a concern

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Newser By Users

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