Stocks Sag on Greenspan Testimony

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Stocks slipped Thursday as Federal Reserve Chairman Alan Greenspan offered more testimony on the state of the economy, the funding shortfall for Medicare, and the problems facing the Social Security program.


The Fed chairman, who supports President Bush’s idea of setting up private retirement accounts for younger workers, fielded questions from members of the House Financial Services Committee. He told a Senate panel Wednesday the economy continues to expand at a respectable pace, and that inflation, while not an immediate threat, remains something policymakers must continue to guard against.


In the final hour of trading, the Dow lost 62.45, or 0.6 percent, to 10,772.43. The Standard & Poor’s 500 Index was down 7.97, or 0.7 percent, at 1,202.37. The Nasdaq shed 21.49, or 1.0 percent, to 2,065.94.


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