Economy Has `Staying Power,' Says Greenspan
The U.S. economy has emerged from its winter "soft patch" and is back on solid footing, Federal Reserve Chairman Alan Greenspan said yesterday.</br></br>"Although not all of the uncertainties have been resolved . . . the current economic expansion seems to have exhibited staying power," Greenspan told the House Budget Committee. "The most recent reports on inflation also have been reasonably encouraging."</br></br>Meanwhile, the Senate Banking Committee unanimously recommended that the Senate confirm President Clinton's appointment of the Fed chairman to a third, four-year term.</br></br>The Banking Committee similarly approved the nominations of White House budget director Alice M. Rivlin as vice chairman and St. Louis economist Laurence H. Meyer as a member of the Federal Reserve Board.</br></br>Greenspan attributed much of the slowdown in economic growth late last year to businesses bringing their inventories in line with reduced sales expectations, which caused a drop in production. "Much, but perhaps not all, of the needed inventory correction already has been accomplished," he said.