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Can any tinkering be done to spread these pressures out?
The consensus view is that the expected slowdown is likely to create enough spare capacity to suck inflationary pressures out of the economy.
In prepared testimony delivered to both the House and Senate committees, Mr. Greenspan said that squeezing inflationary pressures out of the economy would have to involve bringing the growth in asset values into line with the growth in income.
Seeking to squeeze any inflation pressures out of a red-hot economy, the Fed has raised its benchmark federal funds target rate on overnight loans among banks by 1.75 percentage points in six steps since June 1999, to 6.5percentt.
He has raised the possibility that the Fed might need to push growth below 3.5 or 4percentt for some period and allow the unemployment rate to rise to 5percentt or higher to squeeze inflation pressures out of the economy.
The central bank had undertaken a two-year campaign of interest rate increases to squeeze inflationary pressures out of the economy, halting this summer to see what effect it was having.
Similar(53)
"He may have felt he was going to be pressured out by the new governor.
"They pressured out so far that it just opened up lanes for us to drive," said guard Sherron Collins, who had 10 points.
Gently apply pressure to press out air on each side.
Leading patients to the most appropriate point of service might indeed lower the pressure on out-of-hours medical care.
It was unbelievable pressure and it was very difficult, and that pressure brought out the best in everybody".
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