WASHINGTON, April 8: Federal Reserve Chairman Alan Greenspan said on Friday the success of financial services’ industries in expanding credit availability has significantly helped the US economy. “Home ownership is at a record high, and the number of home mortgage loans to low- and moderate-income and minority families has risen rapidly over the last five years,” Greenspan said in prepared remarks for delivery to a conference on community affairs sponsored by the Fed.
“Credit cards and instalment loans also are available to the vast majority of households,” the Fed chief noted, adding that carried with it an obligation to acquire the education needed to use them wisely.
Greenspan said that policy-makers, bankers and consumer advocates must remain open to the idea of innovation and restructuring within financial services businesses to ensure they remain flexible enough to benefit consumers and foster market demand.
He made no comment on current United States economic conditions nor on prospects for future interest-rate changes.
