Business and Finance
GREENSPAN SUGGESTED that progress against inflation may be drawing to a close, but stopped short of saying policy makers will have to raise interest rates. The Fed chairman said 1996 so far "has been a good year" for the economy, but that it would begin to slow down in the second half. He said the Fed will be in a state of "heightened surveillance" for signs of higher inflation in weeks ahead.</br></br>Stocks and bonds rallied on his testimony. The benchmark bond's price rose nearly 1 1/4 points, pushing the yield back below 7%. The Dow Jones industrials rose 87.30 to 5464.18, and the Nasdaq gained 23.17 to 1109.82.</br></br>---</br></br>AT&T showed significantly lower calling volume and revenue growth in the second quarter, though its overall net income rose by 10%. The company's shares fell 4% to $54.125.</br></br>Lucent posted strong quarterly revenue growth, but profit was cut by the high cost of splitting from AT&T.