Greenspan, Hinting Additional Decrease of Interest Rate

Alan Greenspan, Chairman of Federal Reserve Board (FRB), said that the U.S. economic condition is still in recession and that if the situation does not improve soon, additional interest rate decrease may be considered on July 24. He said in Senate Banking Committee, ``Economic indicators, which have been alarming recessive situation, are mixed, which implies that the U.S. economy is moving forward positively. Nevertheless, it is also true that the situation may become worse.``

Greenspan commented, `` Consumers are optimistic about the future economy.`` and predicted that energy cost reduction and active consumptions would give more profits to business. After he pointed out that several steps of interest rate decreases this year have been effective, Greenspan predicted that the interest rate policy of FRB and government tax reduction would influence economic activities widely.

Experts expected that the FRB would hold a meeting of Federal Open Market Committee (FOMC) on August 21 and decide on additional 0.25 % cut of interest rate.