Federal Reserve chief Ben Bernanke has warned that the US economy will slow noticeably before the end of the year.
He blamed the slowdown on the credit crisis, which has made it harder for banks and individuals to borrow money.
He said that there was likely to be more "financial restraint on economic growth as credit becomes more expensive and difficult to obtain".
In the longer term, he said that the greater premium attached to risk may lead to a healthier financial system.
"Investors have also become more cautious and are demanding greater compensation for bearing risk," he said.
The credit crisis, caused by an abundance of debt of questionable value, has made banks more reluctant to lend money.
Mr Bernanke acknowledged that this was causing particular problems to homeowners who wanted to refinance their mortgages to offset the end of special offer rates.
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