US Federal Reserve chairman Mr Alan Greenspan said today that even after the US central bank's two January rate cuts, the US economy was still at risk of a below-par performance - a signal that more rate cuts are coming.
His remarks in an updated version of key monetary testimony to the US Congress sent the clearest indication yet that the Fed intends to follow through on the rate cuts of January 3rd and January 31st - totaling a full percentage point - with more cuts but he did not give any hints about the timing of possible moves.
"The economy appears to be on a track, well below the productivity-enhanced rate of growth of its potential" he said in his testimony.
Even as he highlighted the economic risks, however, Mr Greenspan offered some soothing words for investors, business people and consumers who have grown concerned lately about the threat of a recession.
He said the abrupt economic slowing may prove limited.