Bernanke confirmed that there will most likely be rate cuts to help the financial situation.  He mentioned that they will take "substantive additional action" if necessary to ward off inflation and a forcasted recession.  Here is a small excerpt from Business Week, but the entire article is well worth reading.

BusinessWeek 1/11/2008
Bernanke's speech Thursday [Jan. 10] tipped the balance to a 50 basis point rate cut at the end of the month. Gone is the balanced risks talk and in its place is a clear focus on the downside risks to growth.  More...