On Current Account: A Gentler Greenspan?

Feb. 4, 2005
Federal Reserve Board Chairman Alan Greenspan is sounding a little less concerned about two major deficits that directly affect the growth rate of the U.S. economy and the amount and cost of business borrowing. Market forces, Greenspan said at a London ...

Federal Reserve Board Chairman Alan Greenspan is sounding a little less concerned about two major deficits that directly affect the growth rate of the U.S. economy and the amount and cost of business borrowing. Market forces, Greenspan said at a London conference on Feb. 4, seemed ready to stabilize and eventually decrease the deficit in the U.S. current account, the broadest measure of the country's international economic standing. In essence, as Merrill Lynch & Co. notes, Greenspan is saying U.S. exports will rise and imports will fall -- as will the amount of financing need to cover the deficit.

What's more, Greenspan reported hearing the sound of a bit more fiscal restraint coming from Washington, D.C. "The voice of fiscal restraint, barely audible a year ago, has at least partially regained volume," he stated. "If actions are taken to reduce federal government dissaving, pressures to borrow from abroad will presumably diminish."

With the White House this week submitting to Congress its proposed federal budget for fiscal year 2006, just how much fiscal discipline exists will soon be apparent.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!