Greenspan says economy still at risk of weak growth
7/18/2001 10:05:00 AM
WASHINGTON, July 18 (Reuters) - The struggling U.S. economy faces a range of hurdles that could imperil a hoped-for rebound and force the Federal Reserve to cut interest rates further, Fed Chairman Alan Greenspan said on Wednesday.
But Greenspan told the House Financial Services Committee that six rate cuts the Fed already has done so far this year, plus a tax cut and cheaper energy, should assist the economy as it tries to pull out of its slump later this year.
"The period of sub-par economic performance, however, is not yet over, and we are not yet free of the risk that economic weakness will be greater than currently anticipated, and require further policy response," Greenspan said, adding that the weakness could come from softer demand abroad or domestic events.
"But we need also to be aware that our front-loaded policy actions this year coupled with the tax cuts under way should be increasingly affecting economic activity as the year progresses," Greenspan said.
REUTERS
Rtr 10:05 07-18-01
7/18/2001 10:05:00 AM
WASHINGTON, July 18 (Reuters) - The struggling U.S. economy faces a range of hurdles that could imperil a hoped-for rebound and force the Federal Reserve to cut interest rates further, Fed Chairman Alan Greenspan said on Wednesday.
But Greenspan told the House Financial Services Committee that six rate cuts the Fed already has done so far this year, plus a tax cut and cheaper energy, should assist the economy as it tries to pull out of its slump later this year.
"The period of sub-par economic performance, however, is not yet over, and we are not yet free of the risk that economic weakness will be greater than currently anticipated, and require further policy response," Greenspan said, adding that the weakness could come from softer demand abroad or domestic events.
"But we need also to be aware that our front-loaded policy actions this year coupled with the tax cuts under way should be increasingly affecting economic activity as the year progresses," Greenspan said.
REUTERS
Rtr 10:05 07-18-01
