Article: Statement by Alan Greenspan, Board of Governors of the Federal Reserve System, before the subcommittee on Domestic and International Monetary Policy, Committee on Banking and Financial Services, U.S. House of Representatives, July 19, 1995.(Statements to the Congress)

I am pleased to appear today to present the Federal Reserve's semiannual report on monetary policy. In February, when I was last here for this purpose, I reported that die U.S. economy had turned in a remarkable performance in 1994. Growth had been quite rapid, reaching a torrid pace by the final quarter of die year, when real gross domestic product rose at a 5 percent annual rate and final sales increased at a 5 3/4 percent rate. Inflation had remained subdued through year-end, although productive resources were stretched: The unemployment rate had fallen to its lowest level in years, while manufacturing capacity utilization had been pushed up to a historically high level.

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