Greenspan Says U.S. on `Firm Footing,’ Rates May Rise

Federal Reserve Chairman Alan Greenspan said the economy is on a “firm footing” and central bankers may keep raising the U.S. benchmark interest rate at a “measured” pace, cooling speculation about a pause in rate increases.

“Most recent data support the view that the soft readings on the economy observed in the early spring were not presaging a more serious slowdown in the pace of activity,” Greenspan told the Joint Economic Committee of Congress today. “The U.S. economy seems to be on a reasonably firm footing and underlying inflation remains contained.”