Federal Reserve Board Chairman Alan Greenspan issued a terse, five-paragraph rebuttal on Wednes-day to charges by Rep. Henry B. Gonzalez that the central bank lacks the legal authority to undertake foreign currency exchange operations.

Mr. Greenspan wrote that the Attorney General and the Treasury Department's general counsel concurred in a Fed legal opinion presented to Congress in 1962. The opinion held that the Federal Reserve Act gives the central bank the power to conduct exchange operations.

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