Financial Times FT.com

Greenspan warns on impact of asset prices

By Andrew Balls In Jackson Hole, Wyoming

Published: August 26 2005 15:37 | Last updated: August 26 2005 21:09

Alan Greenspan, Federal Reserve chairman, warned on Friday that movements of stocks, bonds and house prices are having a far greater impact on US and global growth than in the past.

Mr Greenspan, who is due to retire from the US central bank in January, said the Fed was paying increased attention to these issues and implied that his successor might have to cope with a sharp drop in asset prices, complicating monetary policymaking.

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