FED will 'act as needed'

Do what must be done Commander Ben. Do not hesitate, show no mercy :)
The rate will be cut.

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2007-08-31 15:04:15

JACKSON, Wyo. (AP) - Federal Reserve Chairman Ben Bernanke pledged Friday that the central bank will 'act as needed' to keep the credit crisis that has unhinged Wall Street from hurting the national economy.
In anxiously awaited remarks, Bernanke didn't specify what the Fed's next move will be but made clear policymakers are keeping close tabs on the problem, which has roiled investors in the United States and around the globe.
Even as Bernanke vowed Fed action, he sought to temper investors' expectations.
'It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions,' Bernanke said. 'But developments in financial markets can have broad economic effects felt by many outside the markets, and the Federal Reserve must take those effects into account when determining policy.'
Many believe the odds are growing that the Fed will cut its most important interest rate, now at 5.25 percent, by at least one-quarter percentage point on or before Sept. 18, its next regularly scheduled meeting. The Fed hasn't lowered this rate in four years.