- Decisions coming soon on steel mill, smelter in New Madrid (11/17/17)1
- Cape man accused of secretly recording women, posting to porn site (11/22/17)
- Thankful People: Kirsten Strebe recovers from traumatic car accident, brain injury (11/23/17)
- Cape attorney Brandon Cooper to run for judge (11/20/17)2
- Thankful People: Moore family counts its blessing after harrowing accident (11/23/17)
- Cape native co-directs Thanksgiving-related indie film, 'Drinksgiving' (11/17/17)
- State audit: Bollinger County tax levies violate state law; county commission disagrees (11/17/17)3
- Deal Finder brings 'unique' shopping to Cape Girardeau (11/24/17)
- The Tungsten Groove to release first album featuring original songs (11/17/17)
- 1 dead, 3 hurt in accident on Highway 72 (11/19/17)
Interest rate increases may accelerate
WASHINGTON -- The Federal Reserve is ready to raise interest rates more quickly than its current "measured" pace if inflation suddenly worsens, chairman Alan Greenspan said Tuesday.
Still, Greenspan delivered a generally upbeat assessment of economic prospects to Congress, seeking to allay concerns that a pronounced dip of economic activity in June could turn into something more severe. He said a slowdown in consumer spending, which accounts for two-thirds of the total economy, appeared to be "short-lived," with preliminary indications that July growth was already rebounding.
The economy was moving through a "soft patch," based on a number of weaker-than-expected statistics in June, he said.
Delivering the Fed's midyear economic outlook to the Senate Banking Committee, Greenspan said that in most respects economic conditions through the first half of the year have "been generally quite favorable," with overall growth at a strong rate that has finally generated a significant rebound in job growth.
He did say inflation figures had risen, but he attributed much of the increase to "transitory factors" such as a spike in oil prices.
On June 30, the Fed, for the first time in four years, boosted its target for the federal funds rate, the interest that banks charge each other on overnight loans, by a quarter-point to 1.25 percent.