WASHINGTON, July 20: Federal Reserve chief Alan Greenspan pointed on Wednesday at more rate rises to come in a generally upbeat assessment of the US economy that still warned of challenges.

In his final testimony to the financial services committee of the House of Representatives, Greenspan said the Fed’s “baseline outlook for the US economy is one of sustained economic growth and contained inflation pressures”.

In a report accompanying the testimony, the Fed revised down its growth forecast for GDP this year to a range of 3.0-3.75pc, from 3.75-4.0pc before. For 2006, it predicted growth of 3.25-3.75pc.

He said a slowdown in labour productivity growth could cloud the upbeat picture, and high oil prices represent another “major uncertainty in the economic outlook”.—AFP