New technology `boosting US'

ALAN GREENSPAN, the US Federal Reserve chairman (pictured), said yesterday that business investment in new technology is boosting US productivity and keeping a rein on inflation. However, he cautioned that the benefits from technological developments might be short-lived.

Mr Greenspan, who was speaking to the Joint Economic Committee of Congress, is to address broader questions about the US economy's performance and the Fed's policy on interest rates at a second appearance before the committee on Thursday this week.