Greenspan to make last semi-annual report to Congress
July 18, 2005
When Federal Reserve Chairman Alan Greenspan addresses the US Congress on Wednesday and Thursday in his semi-annual testimony on the economy, investors will be waiting to see what, if anything, he says about the continuing string of interest rate rises in the US.
Most analysts feel that there will be no news that the rate rises will stop in the near future, and that the fourth quarter is the earliest that the Fed might halt the series of quarter-point hikes, and in fact some analysts feel that Mr. Greenspan will actively promote a continuation of the rate hikes to Congress.
Additionally, Mr. Greenspan is expected to address the boom in housing prices as well as the current “conundrum” concerning low long-bond prices, but he will likely paint an overall positive picture of the US economy.
Perhaps the most notable thing, however, about Mr. Greenspan’s semi-annual report to Congress is the fact that it will likely be his final time to deliver the report, as he is set to retire as chairman of the Fed on January 31, 2006.