莲喇母矮将贸多大学 高级商务英语阅读 Supplementary Reading for Chapter 4 Economy Terrorized Alan Greenspan:Can his monetary policy prevent economic busts? Dr Frank Shostak BrookesNews.Com Monday 12 July 2004 On June 30 Alan Greenspan lifted the Federal Funds rate target by 0.25%to 1.25%.The catalyst that brought the reversal in the mindset of Greendspan and his Fed colleagues were the strong increases in various economic indicators.After falling to 0%in Q4 2001 the yearly rate of growth of real GDP registered 4.8%in Q1 2004.Furthermore,since January in excess of 1.1 new jobs have been created. Additionally,price inflation,which only a few months ago wasn't even discussed by Alan Greenspan and other Fed policy makers,has become an important concern.What lifted its importance is the fact that various price indexes have had very visible rises.Thus the yearly rate of growth of the consumer price index(CPI)jumped from 1.7%in February to 3%in May.Similarly the yearly rate of growth of the personal consumption price deflator jumped to 2.5%in May from 1.5% in February. Against all these developments Alan Greenspan and other Fed policy makers have concluded that the Fed Funds rate target of 1%is far too low and runs the risk of undermining the central bank's objective of maintaining price stability and bringing the economy onto a stable growth path. In the released statement the Fed signalled that there are likely to be further increases in the Fed Funds rate target;however,these increases will be gradual.To be sure the Fed also added that its policy makers will respond to changes in economic prospects as needed to fulfil its obligation to maintain price stability. 第1页共8页高级商务英语阅读 Supplementary Reading for Chapter 4 Economy Terrorized Alan Greenspan: Can his monetary policy prevent economic busts? Dr Frank Shostak BrookesNews.Com Monday 12 July 2004 On June 30 Alan Greenspan lifted the Federal Funds rate target by 0.25% to 1.25%. The catalyst that brought the reversal in the mindset of Greendspan and his Fed colleagues were the strong increases in various economic indicators. After falling to 0% in Q4 2001 the yearly rate of growth of real GDP registered 4.8% in Q1 2004. Furthermore, since January in excess of 1.1 new jobs have been created. Additionally, price inflation, which only a few months ago wasn't even discussed by Alan Greenspan and other Fed policy makers, has become an important concern. What lifted its importance is the fact that various price indexes have had very visible rises. Thus the yearly rate of growth of the consumer price index (CPI) jumped from 1.7% in February to 3% in May. Similarly the yearly rate of growth of the personal consumption price deflator jumped to 2.5% in May from 1.5% in February. Against all these developments Alan Greenspan and other Fed policy makers have concluded that the Fed Funds rate target of 1% is far too low and runs the risk of undermining the central bank's objective of maintaining price stability and bringing the economy onto a stable growth path. In the released statement the Fed signalled that there are likely to be further increases in the Fed Funds rate target; however, these increases will be gradual. To be sure the Fed also added that its policy makers will respond to changes in economic prospects as needed to fulfil its obligation to maintain price stability. 第 1 页 共 8 页