Federal Reserve Chairman Ben Bernanke on Thursday hinted that the U.S. central bank might cut interest rates further in December.

The U.S. policymakers "have to remain exceptionally alert and flexible as we continue to assess how best to promote sustainable economic growth and price stability," Bernanke said in a speech to a business group in Charlotte, North Carolina.

The U.S. economic outlook has been "importantly affected over the past month by renewed turbulence in financial markets, which has partially reversed the improvement that occurred in September and October," said the leader of U.S. central bank.

"These developments have resulted in a further tightening in financial conditions, which has the potential to impose additional restraint on activity in housing markets and in other credit-sensitive sectors," he added.

In his remarks, Bernanke said the Federal Reserve is following the evolution of financial conditions carefully, with particular attention to the question of how strains in financial markets might affect the broader economy.

He also explained that the Fed will have to judge whether the outlook for the economy or the balance of risks has shifted materially in making its policy decision.

"We will take full account of the implications for the outlook of both the incoming economic data and the ongoing developments in the financial markets," he said.

Bernanke's remarks came just hours after the White House cut its U.S. economic growth forecast for 2008 due to recent financial market turmoil and continued difficulties in the housing sector.

According to the forecast released by the White House's Council of Economic Advisers, the American gross domestic product will grow by 2.7 percent next year, down from a June forecast for 3.1 percent increase.