Fed chairman says inflation in check for now, but economy stronger, and Fed will act eventually.
April 21, 2004: 10:08 AM EDT
NEW YORK (CNN/Money) - The U.S. economy is growing with more vigor, and interest rates must eventually rise to keep inflation in check, Federal Reserve Chairman Alan Greenspan said Wednesday, another hint that a Fed rate hike is nearing.
While the threat of "disinflation," or a lack of corporate pricing power, seems to have faded, inflation is still dormant so far, since labor costs are flat, the central bank chairman said in prepared remarks delivered to the Joint Economic Committee of Congress.
"But the Federal Reserve recognizes that sustained prosperity requires the maintenance of price stability and will act, as necessary, to ensure that outcome," he added.
Fed policy makers are scheduled to meet May 4 to discuss the economy and their target for the federal funds rate, an overnight bank lending rate that influences other rates throughout the economy. Few analysts expect a rate increase at that meeting, but market participants expect a rate hike to come at the Fed's August policy meeting.
O Clubeinvest.com informa que nenhuma da informação
aqui facultada deverá ser entendida como conselho ou recomendação
de qualquer tipo de transacção ou investimento.
