This week's In the News examines Federal Board of Governors Chairman Alan Greenspan's Monetary Policy Testimony and Report to Congress, issued July 21, 1998. The ten resources discussed give background information on Chairman Greenspan's opinion, the US Congressional budget process, and the relationship between federal regulation and stock market activity. Also provided are links to official FRB Humphrey-Hawkins testimony and reaction. Although the performance of the US economy continues to be "impressive," according to Greenspan, important "crosscurrents" may seriously impact the US economy in the future. Stirring fear in the hearts of Wall Street investors and US congressmen alike, Chairman Greenspan cited financial crises in Russia (reviewed in the July 16, 1998 Scout Report for Business & Economics
) and Japan (reviewed in the June 18, 1998 Scout Report for Business & Economics
) as leading indicators of possible stagnation and inflation in America's economic future. Such cautionary words initially sent the Dow Jones industrial average plunging fifty points following the press release, but other factors such as the General motors strike in Flint, MI (reviewed in the July 2, 1998 Scout Report for Business & Economics
) and possible government instability caused by the Monica Lewinsky Case may also produce new prudence on the trading floor.
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