WASHINGTON -- Federal Reserve Board Chairman Alan Greenspan said he does not anticipate a sharp drop in the housing market or the sale of single-family homes specifically.
Mr. Greenspan, testifying before a House Banking subcommittee in his semiannual Humphrey-Hawkins testimony on economic policy, said the slower pace of building permits and housing starts is consistent with the economic climate of rising interest rates.
Mr. Greenspan also reaffirmed his support for a stronger U.S. dollar, saying a weak currency is neither good for America or its trading partners. "It is very important that we, the United States government and all of its various aspects, recognize... that the stronger dollar essentially helps the U.S.," Greenspan said. He declined to predict the dollar's future level.
"What we do not wish to see happen is a loss of confidence in the productivity of dollar-denominated assets," Mr. Greenspan said. "The dollar often signals what the rest of the world's view is of the American economy."
The central banker's prepared remarks today largely matched the testimony he delivered to the Senate Banking Committee Wednesday. -- Dow Jones