Ben Bernanke offered no clear signal that the Federal Reserve is poised to cut interest rates in a speech to central bankers on Friday, even as he reaffirmed its commitment to take into account the likely effects of financial market turmoil on the economy reports the Financial Times.

The Fed chairman made it clear that there would be no rate cuts simply to bail out investors, declaring “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.”

But he also said that 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.”

The overall tone of the Fed chief’s remarks, at the opening session of its annual retreat in Jackson Hole Wyoming, suggested that the US central bank remains quite uncertain about the likely future path of interest rates.

This stands in contrast to the apparently high degree of certainty in the markets that the Fed will soon embark on a series of rate cuts.

Read it here: No Signal on Rate Cut