Federal Reserve Chair Ben Bernanke is warning the economic crisis could take a turn for the worse, creating a threat he called of “historic dimension.” Bernanke made the call as he hinted at a possible cut in interest rates.

Federal Reserve Chair Ben Bernanke: “Overall, the combination of the incoming data and recent financial developments suggests that the outlook for economic growth has worsened and that the downside risks to growth have increased. At the same time, the outlook for inflation has improved somewhat, though it remains uncertain. In light of these developments, the Federal Reserve will need to consider whether the current stance of policy remains appropriate.”

Any rate cut would likely be coordinated with other central banks. Despite the possibility, global markets continue to decline. Here in the US, the Dow fell for a fifth consecutive day, losing five percent. Japanese markets fell more than nine percent today. Stocks also fell in Germany, Switzerland, France and Egypt. Iceland is said to be in such perilous shape the country is on verge of financial ruin.