FXstreet.com (Barcelona) - Federal reserve chairman Ben Bernanke has shed some light on the Fed's decision to cut rates by 50 basis points last months defending the use of strong central bank action in order to prevent worst case scenarios in a conference held in St. Louis on Friday.

Bernanke affirmed that there are robust control methods developed in order to minimize consequences of worst case scenarios, including scenarios with low probabilities of being realized.

The Fed's chairman affirmed that risk management considerations played a role on the decision since a weak housing market together with tighter credit conditions cold damage economy.