Financial Times FT.com

Bernanke fuels hope of interest rate cuts

By Krishna Guha in Jackson Hole and Andrew Ward in Washington

Published: August 31 2007 15:10 | Last updated: September 1 2007 00:35

Ben Bernanke said on Friday the Federal Reserve would act as needed to ease the impact of recent market turmoil on the economy, in a speech widely interpreted as opening the door to possible interest rate cuts.

Most analysts viewed the remarks as a sign that the Fed is virtually certain to lower rates at its September 18 policy meeting, although the Fed chairman, who said the effects of market turmoil remained uncertain, did not make any commitment to do so.

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