Up, up and away in my Greenspan baloon
Alan Greenspan said Wednesday that the central bank will keep raising interest rates to ensure that the economy expands at a solid pace with tame inflation. He also warned of “speculative fervor” in housing markets.
“Our baseline outlook for the U.S. economy is one of sustained economic growth and contained inflation pressures,” Greenspan told the House Financial Services Committee in his midyear economic outlook - the last before his retirement in early 2006. “Realizing this outcome will require the Federal Reserve to continue to remove monetary accommodation,” Greenspan said, referring to the fact that interest rates remain relatively low. (Reuters)
