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FT: Greenspan

Greenspan Must be Sensitive to Growth Uncertainty

Published in the Financial Times on September 19, 2005
September 15, 2005

A month ago, the US economy looked to be on course. Inflation was edging up but still well within Federal Reserve policymakers' comfort range. With real growth steady at just above 3½ per cent, output was near its target level as well. Then the storm hit. With Hurricane Katrina came not only loss of life and destruction of property but a significant increase in uncertainty.