Greenspan: Rate Hikes Could Hasten; Chairman Says Economic Slowdown 'Short-Lived'

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WASHINGTON (AP) - The Federal Reserve is ready to raise interest rates more quickly than its current "measured" pace if inflation suddenly worsens, chairman Alan Greenspan said Tuesday.

Still, Greenspan delivered a generally upbeat assessment of economic prospects to Congress, seeking to allay concerns that a pronounced dip of economic activity in June could turn into something more severe. He said a slowdown in consumer spending, which accounts for two-thirds of the total economy, appeared to be "short-lived," with preliminary indications that July growth was already rebounding.

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Greenspan: Rate Hikes Could Hasten; Chairman Says Economic Slowdown 'Short-Lived'

The economy was moving through a "soft patch," based on a number of weaker-than-expected statistics in June, he said...

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