Federal Reserve Board Chairman Ben Bernanke said the Fed would cut interest rates as needed to prevent housing and credit problems from plunging the country into a recession, the Associated Press reported.
Bernanke said Thursday that the Fed was prepared to act aggressively to bolster a weakening economy, AP said.
The Fed’s most recent cut of the key interest rate that banks charge each other left the rate at 4.25%.
The Fed next meets on Jan. 29-30, when some economists predict a half-point reduction, AP reported.
The Fed cut the benchmark interest rate by a quarter-point in September and December of last year, and a half-point in October.
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