Greenspan: Rates Will Stay Low as Long as Necessary

Updated from 11:56 a.m. EDT

The Federal Reserve will keep interest rates low for as long as necessary, Chairman Alan Greenspan said Tuesday in his twice-yearly testimony before Congress.

Greenspan noted that industrial production has "stabilized" after months of declines. He said consumer spending has held up "reasonably well" and that the housing market continues to be "strong." But the central bank chair said that data on employment and aggregate output remain "mixed."

The exchange between lawmakers and Greenspan was heated at times. Rep. Bernard Sanders, an independent from Vermont who has confronted Greenspan in the past, accused the Fed chairman of skewing policy toward very wealthy Americans and big corporations. In response, Greenspan said "the U.S. has the highest standard of living of any country its size in the world." ...