WASHINGTON - Federal Reserve Board Chairman Alan Greenspan is set to testify about the state of the economy before the Senate Banking Committee on July 19.

Committee Chairman Phil Gramm said in a statement Thursday that the hearing was scheduled after lawmakers on the House and Senate Banking committees this week resolved a dispute over whether, and how often, to make the Fed chairman come to Capitol Hill to talk about monetary policy.

Mr. Greenspan and his successors are to testify once a year before Senate Banking and six months later before House Banking. However, the second committee may schedule a follow-up hearing if necessary. Both sides plan to push legislation amending the Federal Reserve Act accordingly.

The 1978 Humphrey-Hawkins law, which required the Fed to report to each of the two panels twice yearly, expired in December, but Congress extended the requirement for six months in its catchall budget bill last fall. House Banking Chairman Jim Leach supports the compromise but favors having the Fed chairman appear twice annually before his committee, his spokesman said. Rep. Leach plans to invite Mr. Greenspan to testify in July after his Senate Banking appearance.

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