WASHINGTON -- Federal Reserve Board Chairman Alan Greenspan, in a letter to a senator written before last week's interest rate increases, said he believed long-term rates would have gone up even if the Fed had not raised short-term rates.

In the letter dated May 13 and released by Sen. Byron Dorgan. D-N.D., Mr. Greenspan said that while the Fed had expected some increase in long-term rates in response to its actions, rates moved up far more than had been originally expected.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.