Greenspan notes solid economic growth in US

In closely watched testimony to the Senate Banking Committee on Tuesday 20 July, Fed chairman Alan Greenspan said sharp price increases that may have slowed US consumer spending are "transitory" and "accounted for at least some of the observed softness in consumer spending of late, a softness which should prove short-lived."

"Not only has economic activity quickened, but the expansion has become more broad-based and has produced notable gains in employment," the Fed chief said as he presented his

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