Greenspan Frowns on Energy Supply While Gas Prices Drop Again

Washington DC October 18, 2005; The AIADA newsletter reported that Federal Reserve Chairman Alan Greenspan before an audience in Tokyo yesterday, said that the “balance of world energy supply and demand has become so fragile that weather, sabotage or local conflicts could have a significant impact on economic growth,” reported USA Today.

Greenspan went on to say that “although the global economic expansion appears to have been on a reasonably firm path through the summer months, the recent surge in energy prices will undoubtedly be a drag from now on," Greenspan said.

The Chairman’s comments come almost a month after he said Hurricane Katrina would not pose a persistent economic threat. Meanwhile, the average cost for gas in the U.S. dropped another 12 cents last week to $2.73 a gallon, Reuters reports. The national average has now dropped 20 cents in the last two weeks