Fed Chief Optimistic on Productivity

Federal Reserve Chairman Alan Greenspan said he saw no bubble in the U.S. housing market and added that longer-term prospects for crucial capital spending were sound even with a mixed near-term outlook.

Although there probably was some statistical “noise” in recently released first-quarter productivity data showing an annualized growth rate of 8.6%, the Fed chief said, productivity growth remains strong, thus lifting the pace at which the economy can grow without triggering inflation.