Fed ready to act on worsening outlook: Bernanke

The Federal Reserve looks set to cut rates further after its chairman, Ben Bernanke, said central bank policy would look to counter the increasing risk of an economic slowdown.

Speaking on Thursday, Bernanke said: "We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks."

The chances of the credit crunch impacting the real economy had increased with the publication of recent data, Bernanke said. "Incoming inform