Bernanke Says Financial Strains Dimming Outlook
Ben Bernake, the US Federal Reserve Chairman, announced that additional financial strains in the economy have dimmed the overall economic outlook. However, these strains have led to the openness of additional interest rate cuts during the upcoming weeks, something that can help aid the overall economic health. The Fed has already lowered overnight interest rates by three-quarters of a percentage point since mid September. By lowering interest rates, the Fed hoped to buffer the economy from a prolonged housing slump and credit market, but the interest rate cuts thus far have had little or no effect on the economic strength.…