THE Federal Reserve chairman, Mr Alan Greenspan, yesterday gave an upbeat assessment about the outlook for the US economy, saying the expansion had "staying power" and inflation was under control. In prepared testimony to the House Budget Committee, the central bank chief said the economy seemed to have shaken off its sluggishness at the turn of the year and appeared poised for continued growth. "The current economic expansion seems to have exhibited staying power," Mr Greenspan said.

He said recent reports on inflation were "reasonably encouraging" and voiced hopes that the Fed would make further progress toward its goal of price stability in the years ahead. Mr Greenspan said the economy should be able to continue running at a high rate without the risk of faster inflation.