Federal Reserve Chairman Ben Bernanke today said that the board stands ready to cut interest rates again to give the economy "adequate insurance against downside risks," reports the Wall Street Journal. The move, which follows 2.25% in cuts to the key rate since September, is widely expected at the Fed's March 18 meeting.
The Fed "will need to judge whether the policy actions taken thus far are having their intended effects," Bernanke told a House finance committee. The chairman also indicated that he is much more worried by the slowing economy than he is about the prospect of inflation, suggesting that inflation could in fact be lower than predicted. (Read more Ben Bernanke stories.)