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Tue, Feb 26, 2002 - Page 21 News List

US Congress about to hear Fed's view

ECONOMY While American lawmakers may want Alan Greenspan to declare the recession dead, the Federal Reserve Chairman will probably be a bit more cautious

REUTERS , WASHINGTON

The questions from lawmakers are sometimes free-wheeling, often aimed at eliciting an opinion from Greenspan that might be turned to political advantage. The Fed chief said in January that he doubted economic stimulus measures -- still being pushed by the Bush administration -- were needed but the topic could easily arise again.

"I do not think it is a critically important issue -- I think the economy will recover in any event," Greenspan said last month.

One potential question for the Fed chairman, who turns 76 next month, seemed to be put to rest this week when a White House official said that, contrary to market rumors, Greenspan wasn't likely to retire before his term ends in two years.

"I think he's a man of robust health who has no intention of going anywhere," said economic adviser Lawrence Lindsey.

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