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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (46791)	12/7/2005 7:45:58 PM
From: ild	Read Replies (1) \| Respond to of 110194

WASHINGTON -- It is "impossible to know" with "any certainty" when a neutral interest rate has been reached, Federal Reserve Chairman Alan Greenspan recently told Congress. "Although the concept of a "neutral interest rate" is a useful theoretical construct, difficulties in implementing it in practice limit its usefulness as a framework for monetary policymaking," Mr. Greenspan wrote Joint Economic Committee Chairman Rep. Jim Saxton (R., N.J.) on Nov. 28, responding to questions from Mr. Saxton. (Text of the letter) "For one thing, a variety of definitions of a neutral real interest rate are possible," Mr. Greenspan wrote. Mr. Saxton's office released Mr. Greenspan's responses on Wednesday. Mr. Saxton had submitted the questions following Mr. Greenspan's Nov. 3 appearance before the committee. Full letter: wsj.com