:: Wednesday, July 16, 2003 ::
Go Alan, go! Yahoo! News - Greenspan Says Fed Could Cut Rates Again
Greenspan said that the Fed was prepared to leave interest rates at low levels "for as long as it takes" — even though rates are at a 45-year low. The goal would be to get the economy growing at a faster pace, he said.
Greenspan's comments — part of the central bank's twice-yearly report to lawmakers - signaled that the Fed, which has already reduced a key interest rate to the lowest level since 1958, is prepared to cut rates again. This could happen as soon as its next meeting on Aug. 12 if the economy is not showing convincing signs of a post-Iraq rebound.
The Fed "stands ready to maintain a highly accommodative stance of policy for as long as it takes to achieve a satisfactory economic performance," Greenspan said in testimony to the House Financial Services Committee
:: Mark 10:11 AM [+] ::