Federal Reserve Chairman Ben Bernanke said on Wednesday the Federal Reserve needs to be flexible in the face of changing economic conditions. "It depends on the circumstances, it depends on why the economy is worsening and where the problem is," Bernanke told the House of Representatives' Financial Services Committee.

"My attitude is that we need to be flexible and address the situation as it arises. It is very hard to conjecture in advance how you would respond to a situation that would have many dimensions to it," the chairman said.

Copyright Reuters, 2008