Greenspan Isn't Worried -- Yet

Strong productivity and continued excess capacity should keep inflation in check, says the Fed chief. Will they?

Suddenly, prices seem to be popping up everywhere. Whether for coffee, lumber, paper towels, or tickets to Disneyland, companies are finding that the booming economy is giving them leeway to jack up prices for the first time in years. That's showing up in higher inflation. On Apr. 14, the government said consumer prices jumped 0.5% in March, bringing first-quarter inflation to an unsettling 5.1% annualized rate, vs. just 1.9% last year.

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