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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey D who wrote (5837)	6/14/1999 10:26:00 AM
From: Wally Mastroly	Read Replies (1) \| Respond to of 15132

Greenshades Watch - advises caution on productivity hopes, but... biz.yahoo.com >WASHINGTON, June 14 (Reuters) - Federal Reserve Chairman Alan Greenspan offered a cautionary note on Monday about the U.S. economy's capacity to expand quickly without inflation, saying fast productivity growth may not last forever. ''The rate of growth of productivity cannot increase indefinitely,'' Greenspan told a congressional panel in prepared testimony. ''While there appears to be considerable expectation in the business community, and possibly Wall Street, that the productivity acceleration has not yet peaked, experience advises caution.'' In his testimony on the role of high-technology industry in the U.S. economy, the world's most powerful central banker did not directly discuss the outlook for monetary policy. Financial markets expect the Fed to raise interest rates at its next policy meeting on June 29-30. But Greenspan did describe the performance of the U.S. economy as ''remarkable'', giving credit to advances in new technology. Speaking before the Joint Economic Committee of Congress, he said those advances had encouraged business competition and helped to hold down prices. This had occurred because investment in technology had boosted factory capacity. ''The resulting slack in product markets has put greater competitive pressure on businesses to hold down prices. Technology is also damping upward price pressures through its effect on international trade,'' he said.<