Greenspan speaks...

Henry C.K. Liu hliu at
Tue Feb 23 11:02:06 PST 1999

Testimony of Chairman Alan Greenspan

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


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


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

More information about the lbo-talk mailing list