U.S. SPEAKER FEARS HIGHER RATES UNDER GREENSPAN
U.S. House Speaker Jim Wright said he
was concerned that the appointment of Alan Greenspan to succeed
Paul Volcker at the Federal Reserve Board would mean interest
rates would rise.
    Speaking to reporters, the Texas Democrat said that based
of Greenspan's tenure as chairman of President Nixon's Council
of Economic Advisers his policies would mean higher rates.
    "His previous service indicates the kind of economic
policies based on the trickle down theory rather than the
percolate up theory. This theory tends to higher interest
rates," Wright said.
    Wright told reporters he would not have chosen Greenspan to
head the Fed, but he declined to name his preference. "It would
be someone whose primary interest is in keeping interest rates
low. That is the national interest," he said.
    His main concern was that high interest rates have slowed
economic growth and held down the number of new jobs. The
United States needs "to reduce the level of interest rates so
this economy can get oxygen and breathe," Wright said.
    Wright said he had not talked with Greenspan about the
appointment.
    Asked to rate Volcker's tenure, he replied, "Long."
 Reuter
