Greenspan upbeat, but still cautious By Rex Nutting
Prospects for the U.S. economy have "brightened," Fed Chairman Alan Greenspan told a congressional hearing Wednesday, but he's in no hurry to raise interest rates. "The foundation for economic expansion has been laid," he said in prepared testimony to the Joint Economic Committee. He acknowledged that the Fed would have to raise interest rates eventually, but with low inflation and inflationary expectations, "the Federal Reserve should have ample opportunity to adjust policy ... once sustained, solid economic expansion is in view." The central banker said consumer spending could be constrained by higher energy costs and reduced wealth. He said business investment growth "is likely to be gradual," pending better profits.