Economy to pick up despite negative data, says Greenspan

RECENT disappointing data on employment and production have not altered the likelihood that the US economy is poised to grow at a faster pace, Federal Reserve chairman Alan Greenspan said.

Interest rates are low enough to spur consumer and business spending, Mr Greenspan suggested in testimony prepared for the Joint Economic Committee.

“Looking ahead, the consensus expectation for a pick-up in economic activity is not unreasonable, though the timing and extent of that improvement continue to be uncertain,’ Mr Greenspan said. “The stance of monetary policy remains accommodative and conditions in financial markets appear supportive of an increased pace of activity,” he said.