It discusses the implications of Federal Reserve Chairman Alan Greenspan testimony in front of Congress. He said that the Federal Reserve Board would not increase interest rates when the meet again on May 7 because of they are unsure of the economy’s strength due to the recession earlier this year. So far they have lowered rates to 40 year lows 11 times last year to help ameliorate the recessionary gap in the economy. So far it seems like the fed’s actions have been successful in recovering from the crises but it is still uncertain whether our economy has reached natural equilibrium in unemployment and Real GDP. So as not to upset and swing the economy back into recession the Fed will avoid raising rates.

The economy first went into the recessionary gap as the Real GD

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