Chairman Bernanke says Fed is ready to act - Economy Watch

Chairman Bernanke says Fed is ready to act - Economy Watch ;..  "The Federal Reserve remains prepared to take action as needed to protect the economy in the event that financial stresses escalate," Bernanke said.

Bernanke was testifying as eurozone officials worked on a plan to rescue banks in Spain, Europe's fourth-largest economy. If officials don't act soon and with conviction, theeurozone debt crisis threatens to plunge Europe into recession and perhaps bring the global economy down with it.

China's economy has already slowed and its banking officials cut benchmark interest rates by 25 basis points Thursday in an attempt to stimulate domestic demand in the world's No. 2 economy