Federal Reserve Chairman Greenspan unsure of terrorists' impact on

Daily Record, The (Baltimore), Oct 17, 2001 by Staff

Federal Reserve Chairman Alan Greenspan said Wednesday it is still too early to determine how much harm the terrorist attacks will have on the U.S. economy but declared the nation's long-run prospects remain strong. Greenspan noted that the central bank has already reduced eased credit appreciably, referring to the two half-point interest rate cuts the Fed has already made since the Sept.

11 attacks. Those rate cuts brought to nine the total of interest rate reductions made this year by the Fed, driving key rates the Fed controls to the lowest level in nearly 40 years. While saying it is still too soon to determine how severe the impacts of the attacks will be on such key sectors as consumer spending, Greenspan said, "The foundations of our free society remain strong and I am confident we will recover and prosper as we have in the past."