17th APRIL 2002 Greenspan to Senate Committee The underline over the Economy direction remain to be clarified: the NEXT TWO TO FOUR MONTHS WILL BE CRUCIAL TO RESOLVE THE REAL GROWTH ON ECONOMY if and how the economic value will meet the business value.The crucial role belong to productivity whose most important key is the VALUE ADDED. -The indicators show that the Retail Sales are holding on , while home building is very strong abd they are supported by the market value of houses, and this contribute to create stability but not to improve consumer expenditure. The most important policies to improve economy has been set during last year: a)Fiscal tax reduction b)Interest rate cut They operated a good action, but not fully accomplished because of terroristic attack.At the moment, underlined the Chairman, there is no evidence of inflation pressure over the USA.The Chairman gave also useful indications to the Senators of different States, concerned about differents problem in their area, such as: unemployment rate, decrease in company profitability,future developing of IT and concluded by putting attention , especially, over the many industries which play as drag on economy.

FED Meeting on 19th March

The Federal Reserve left interests Rates unchanged but signalled there was a growing possibility that rates would rise later in the year.The Us Central Bank 's Policy making open market committee left its key overnight interest rates -The target for the Federal Funds Rate-unchanged at 1,75 per cent.But it shifted its assessmentof the balance of risks between inflation and recession. The Chairman also said that economy is expanding ata a significant pace.

Fed Chmn:Alan GREENSPAN testifies on Monetary Policy on 27th FEBRUARY

Economy is on the way of gradual rebound
Growth forecast this year is: 2,5%-3%
Acceleration is light to be more limited than in the past and the growth on level employment in sectors subject to growth IS TEMPORARY (at the moment)
The change in composition expenditure reflects shift of spending since two years ago

Decrease of consumption has not PLAYED OUT yet

The retrieve of Capital Spending in the last two years has been important

Price pressure will be contained with low inflation level

The ENRON debacle is not so significantly negative effect in the long run, but it has eroded the Investors confidence and it is necessary to fix what is wrong in this system and it is crucial important that the incentives required to the CEO and Board is to improve the control of Corporate Governance.It is necessary to fortify the Boards and individuals.(The main problem was the endeavour in imply that earning were much greater than they really were and this involved also the reputation).
He also gave referral to: Trade Deficit, Decline in Real Wages, Steel Industry , Interests Rates and Congress actions about these topics
No direct forecast to stock market and bond market
underlined the limited short term capacity of forecast in the specific time.