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Economist Sees Inflation in Check Through 2005
CHICAGO -- The chairman of the Federal Reserve, Alan Greenspan, will complete his term that expires in January 2006 and depart "with his legacy as the most powerful and effective Fed chairman in history intact," writes Bank One's chief economist."Assessing Greenspan's end-game strategy is an especially important component to understanding the course the Fed will take over the next 18 months," Diane Swonk writes in One View of the Economy, Bank One's economic newsletter.Bank One's chief economist opines that Greenspan should keep inflation in check the next year and a half, that he should be able to raise interest rate "without dramatically disrupting financial markets." Inflation, Swonk writes, "is unlikely to flare in the near-term."After 2005, she continues, "Inflation is expected to accelerate more rapidly -- and the Fed to act more aggressively. Enjoy the next 18 to 24 months as we might look back on them as the best of the 2000s expansion."For more details, read this month's issue of One View at www.bankone.com/economics"