Economy: Sept. 7, 2001
Fluctuations in housing prices and extreme shifts in the stock market are making it difficult for the Federal Reserve to influence the nation’s economy, according to Fed chairman Alan Greenspan, who spoke recently at the agency’s annual meeting; Greenspan noted that the effects of a Fed interest-rate adjustment can take several months to impact the economy, while changes in housing prices and a surge in the stock market can trigger a sudden flurry of consumer spending.
