WASHINGTON D. C. – "I am very pleased this morning to welcome Chairman Greenspan before the Committee on Banking, Housing and Urban Affairs, to testify on the Federal Reserve's Semi-Annual Monetary Policy Report to the Congress."
"I will keep my remarks brief this morning as we are all eager to hear your views on the U.S. economy and other related issues. We also have the benefit of having read about your remarks before the House yesterday."
"I would just like to make two observations – both of which you highlight in your statement or in your more extensive report."
"First, the economy stands on the brink of a strong recovery. The question is how strong will the rebound be and what further steps can be taken should the recovery falter. There is little question that we all would like to see the economy grow faster and to have more jobs created. A number of stimulative measures including the tax cut enacted in May have already been taken. We know that the Federal Reserve also stands ready to take additional action should the economy remain sluggish."
"Second, the Congress needs to remain focused on achieving the appropriate fiscal policy. Yesterday the OMB announced an update of its budget estimates, revising its estimate of 2003 deficit upward to $455 billion. The budget forecast has been adversely affected by the relatively weak economy and by the necessary expenditures to fight the war on terrorism. Over the longer term, the Congress needs to renew its effort at reforming mandatory programs and controlling government spending. We would certainly welcome your views on the importance of that goal."
"Mr. Chairman, we are pleased to host you this morning. We look forward to hearing your remarks and an enlightening discussion."