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.
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.