Alan Greenspan's Brave New World

He's not scared by faster growth. Why? Because productivity gains are keeping inflation in check

By all conventional indicators, an interest-rate increase should have been a sure thing when the Federal Reserve's Open Market Committee (FOMC) met on May 20. As the 17 central bankers settled around the immense mahogany table in the Fed's conference room, they faced an economy growing at nearly 6% and an unemployment rate below 5%--a level that for the past quarter-century has been a near-certain signal of impending inflation.

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