While the more long-range outlook may remain positive, there will be further increases in unemployment well into next year and sluggish economic growth at best for the remainder of 2001, according to Federal Reserve Chairman Alan Greenspan’s testimony today before the House of Representatives Committee on Financial Services.

Greenspan, maintaining that the Fed monetary easing so far this year has had the effect so far of turning “incoming data on economic activity” from “persistently negative to more mixed,” said in his semi- annual monetary report to Congress that the balance of the Fed’s concern would still be weighted toward economic weakness and away from inflation.

“The period of sub-par economic performance is not yet over,” Greenspan said, noting projections by Federal Reserve governors and presidents that unemplyment may reach as high as 5.25 percent by the end of 2002.

click here for the complete text of Greenspan’s presentation.