Humphrey-Hawkins February 2000

["ÁÎ×Ó¹â HenryC.K.Liu ¹ù¤l¥ú" <hliu@xxxxxxxxxxxxxx>]

 Humphrey-Hawkins Testimony - February 2000

Highlights

Greenspan: It would be imprudent, however, to presume that the business
cycle has been purged from market economies so long as human
expectations are subject to bouts of euphoria and disillusionment.
The FOMC will have to stay alert for signs that real interest rates have
not yet risen enough to bring the growth of demand into line with that
of potential supply, even should the acceleration of productivity
continue.

(The Dow and the S&P turned south within minutes.)

Maintaining the surpluses and using them to repay debt over coming years
will continue to be an important way the federal government can
encourage productivity-enhancing investment and rising standards of
living.

Our limited knowledge of the forces driving the surge in tax revenues in
recent years.

We cannot rule out the possibility that this so-called "tax surprise,"
which has figured so prominently in the improved budget picture of
recent years, will dissipate or reverse.

In answer to questions:

Greenspan denied Treasury debt buybacks as jeapodizing Fed rates
measures.

Immigrants represent one third of the growth of the US labor force and
there is no question taht it contributes significantly to the growth of
the US economy.

Comments from anyone?

Henry C.K. Liu