The Federal Reserve's semiannual report on monetary policy
Before the Committee on Banking, Housing, and Urban Affairs,
U.S. Senate
February 23, 1999
Mr. Chairman and members of the Committee, I appreciate the
opportunity to present the Federal Reserve's semiannual report
on monetary policy.
The U.S. economy over the past year again performed admirably.
Despite the challenges presented by severe economic downturns
in a number of foreign countries and episodic financial turmoil
abroad and at home, our real GDP grew about 4 percent for a
third straight year. In 1998, 2-3/4 million jobs were created on
net, bringing the total increase in payrolls to more than 18 million
during the current economic expansion, which late last year
became the longest in U.S. peacetime history. Unemployment
edged down further to a 4-1/4 percent rate, the lowest since
1970.
And despite taut labor markets, inflation also fell to its lowest rate
in many decades by some broad measures, although a portion of
this decline owed to decreases in oil, commodity, and other import
prices that are unlikely to be repeated. Hourly labor compensation
adjusted for inflation posted further impressive gains. Real
compensation gains have been supported by robust advances in
labor productivity, which in turn have partly reflected heavy
investment in plant and equipment, often embodying innovative
technologies.
http://www.bog.frb.fed.us/BoardDocs/HH/1999/February/Testimony.htm
Doug Henwood wrote:
> Greenspan is about to begin Congressional testimony. The CNBC summary of
> his prepared remarks suggests a hostile turn in the Great One's stance -
> more worry about overheating, labor shortages, rising wages, the threat of
> inflation, and a suggestion that stocks may be "overpriced." Very
> interesting.
>
> Doug