Alan Greenspan’s significant economic uncertainties

US Fed Chief, Alan Greenspan gave his last speech
to Congress overnight. Highlights include:

• The data released over the past
  two months or so accord with the view that the earlier soft readings on the
  economy were not presaging a more serious slowdown in the pace of
  activity.

• Employment has remained on an upward trend, retail spending has
  posted appreciable gains, inventory levels are modest, and business investment
  appears to have firmed.

• Low long-term interest rates have continued
  to provide a lift to housing activity.

• The prices of oil and natural
  gas have moved up again on balance since May and are likely to place some upward
  pressure on consumer prices.

• Slack in labor and product markets has
  continued to decline.

• The baseline outlook for the US economy is one of sustained
  economic growth and contained inflation pressures. Realising this
  outcome will require the Federal Reserve to continue to remove monetary
  accommodation. This generally favourable outlook, however, is attended
  by some significant uncertainties that warrant careful scrutiny.

The full story, including a summary of the
“significant uncertainties” is in Henry’s Blog today.

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