Washington - Federal Reserve Chairman Ben Bernanke Monday said further cuts in US interest rates were "certainly feasible" but warned that other measures would have to take centre-stage as the US works its way out of a massive financial crisis.

The Fed's benchmark federal funds rate has already been slashed to 1 per cent in an effort to boost lending, which has dried up as banks suffered unprecedented losses from the collapse of the US mortgage market over the past year.

"Although further reductions ... are certainly feasible, at this point the scope for using conventional interest rate policies to support the economy is obviously limited," Bernanke told the Austin, Texas, Chamber of Commerce.

Interest rates have not been below 1 per cent since the 1950s. Some economists have predicted the Fed will lower the benchmark rate to zero.

Bernanke instead cited the Fed's efforts to inject billions of dollars in liquidity into financial institutions, which had helped bring some measure of stability back to the US financial system. The Fed has loaned out some 2 trillion dollars to banks over the past year.

The Fed has implemented a series of unconventional measures over the past months to keep lending avenues. Some of those efforts could be still be expanded, Bernanke said.

The Fed may even consider buying up Treasury securities, the yields on which have fallen to record lows as many investors look desperately for a safe place to keep their money, Bernanke said. (dpa)