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Growth Gloom Surrounds Greenspan's Testimony

By John S. McClenahen Today's eagerly awaited Congressional testimony from Federal Reserve Chairman Alan Greenspan comes amidst considerable economic gloom. For example, although manufacturing executives and economists have been bravely talking about a real recovery between now and year-end, Merrill Lynch & Co., New York, believes that U.S. GDP "is likely to grow at below-potential rates for several more quarters." Concerns about deflation, a generalized fall of U.S. prices, persist. "Indeed, the Fed's main goal is to stave off the threat of deflation by stimulating growth," says David A. Rosenberg, Merrill's chief North American economist.

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