Greenspan rejects inflation fears

Inflation is not likely to be a serious concern and the Federal Reserve can stick to its plan to introduce measured increases in the benchmark interest rate, Federal Reserve chair-man Alan Greenspan said in a statement yesterday.

“Our best judgment is that the economy is growing in solid fashion,” Mr Greenspan said to the Senate Banking Committee during a hearing to confirm him for a fifth term as Fed chairman.

“Inflationary pressures are not likely to be a serious concern in the period ahead, he added.