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In a file photo Federal Reserve Chairman Alan Greenspan, seated left, presides over a meeting of ... Congress Seeks Greenspan
WASHINGTON Nov 3, 2005 - Congress has three months left to get Federal Reserve Chairman Alan Greenspan's views, not only on economic policy but also on just about anything lawmakers want him to weigh in on.
Those other topics in the past have ranged from education and energy policy to trade and technology. After 18-plus years in office, Greenspan has not been shy about wading into such areas or politically charged issues such as taxes and Social Security.
Greenspan's appearance comes two days after he and his Fed colleagues decided to boost the federal funds rate by one-quarter of percentage point, to 4 percent, to fend off inflation. That was the 12th increase of that size since the Fed began to tighten credit in June 2004.
Fed policy-makers' sense is that the economy remained sturdy despite the double blow of hurricanes Katrina and Rita. But they are concerned that the toll of high energy prices could aggravate inflation.
In response to the Fed's rate decision, commercial banks lifted their prime lending rates to 7 percent. These rates are used to determine many short-term consumer loans, including certain credit cards and popular home equity lines of credit.
The Fed's action pushed the funds rate, which is the interest banks charge each other on overnight loans, and the prime rate to their highest level in more than four years.
Many economists are predicting the Fed will bump up rates at its next session, on Dec. 13, as well as on Jan. 31, which will be Greenspan's last meeting. Some analysts also are calling for a rate increase on March 28, which would be the first presided over by Ben Bernanke, President Bush's choice to replace Greenspan.
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