By Evelina M. Tainer, Chief Economist, Econoday
April 18, 2002

Fed Chairman Alan Greenspan testified before the Joint Economic Committee this week. Despite pushing back rate-hike worries while at the same time expressing optimism about the economy, Greenspan's comments were not met by rallies in either the stock or bond markets. Greenspan, who had not spoken publicly in a month, basically said that the economy had not changed since the FOMC met a month ago. While economic recovery is clearly in motion, the strength of the recovery is not particularly robust. Both consumer and business spending gains are expected to be gradual over the course of the year. Market players took this to mean that the Fed would probably keep a neutral bias at both the May and June meetings.