October 7, 2008 Bernanke: Financial crisis 'has worsened' outlook for economic growth Play video

(NECN) - Federal Reserve Chairman Ben Bernanke made comments this afternoon following yesterday's massive plunge in U.S. stocks. Bernanke warned that the financial crisis has not only darkened the country's current economic performance, but also could prolong the pain.

Bernanke spoke before the National Association of Business Economics.

The Fed chief's more gloomy assessment appeared to open the door wider to an interest rate cut on or before Oct. 28-29, the central bank's next meeting, to brace the wobbly economy.

Bernanke said the Fed will "need to consider" whether its current stance of holding rates steady "remains appropriate" given the fallout from the worst financial crisis in decades.

Many believe the country is on the brink of, or already in, its first recession since 2001.