Chairman Greenspan presented to the committee the Federal Reserve Board’s semiannual report on monetary policy. He said the Federal Reserve would keep raising interest rates. He gave a positive prediction of “reasonably good” economic growth and low inflation for next year. He expressed some anxiety about rising labor costs and slowing growth in productivity. For the first time he suggested that individual home prices could fall. 

This may be one of Chairman Greenspan’s last appearances on Capitol Hill before his scheduled retirement in January.