Greenspan: Economy on 'Firm Footing'

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ederal Reserve Chairman Alan Greenspan said Thursday said the U.S. economy is on “firm footing,” and that the central bank may keep raising the U.S. benchmark interest rate at a “measured” pace, cooling any speculation about a pause in rate increases, Bloomberg reported.

And the Fed is expected to raise the core rate a quarter point to 3.25% at its next meeting June 29-30, Bloomberg reported.

“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 Congress’ Joint Economic Committee Thursday.

“The U.S. economy seems to be on reasonably firm footing and underlying inflation remains contained,” the Fed chairman said.