Sen. Phil Gramm, chairman of the Senate Committee on Banking, Housing and Urban Affairs, made the following statement today prior to the testimony of Federal Reserve Board Chairman Alan Greenspan and his presentation of the semi-annual Humphrey-Hawkins report on monetary policy:

"Chairman Greenspan, let me welcome you once again before the committee. I want to congratulate you on your reconfirmation. I think the overwhelming vote in the Senate shows that there's great confidence in your leadership.

"More importantly, I want to congratulate you on your record as chairman of the Board of Governors of the Federal Reserve. We now have had price stability for more than a decade. It is built into long-term interest rates; it has become part of the fabric of contemporary American society.

"I know it always makes people nervous when interest rates are raised, but it seems to me in the end that price stability is one of the foundations of American prosperity.

"It's always tempting when people are trying to second guess our monetary policy also to try to second guess what you're doing, but as I told somebody the other day, I'm not going to get in the business of regularly second guessing the most successful central banker in the history of the United States.

"I want to thank you for the great job you're doing. It always makes me happy when equity values go up because I have my old college teacher retirement program, TIAA-CREF.

"In terms of America's interests, the most important is sustaining our economic growth, preserving price stability and keeping going a recovery that is now reaching every element of American society.

"It's an important mission that you have. We're proud of how you're performing that mission, and we look forward today to hearing your report on where we are and what you believe we need to be doing."