Oil Prices Said To Slow U.S. Economy A Bit

High oil prices could crimp — but not derail — economic growth this year, Federal Reserve Chairman Alan Greenspan suggests.

Greenspan, in a letter to lawmakers released Monday, said the rise in oil prices since the end of 2003 probably shaved economic growth by around three-fourths of a percentage point this year after having reduced growth by about one-half point last year.

The economy grew by 4.4 percent last year, the strongest performance since 1999. Private economists believe this year could clock in around 3.5 percent, a slower but still healthy pace.
BusinessWeek