The U.S. economy must be prepared to deal with shocks such as the...

The U.S. economy must be prepared to deal with shocks such as the "deeply disturbing possibility of another significant terrorist attack," Federal Reserve Chairman Alan Greenspan said today before a Senate panel. Although the U.S. economy was able to absorb the shocks of the Sept. 11 attacks, the "remnants of the effects remain," he said during his renomination hearing before the Senate Committee on Banking, Housing and Urban Affairs. The Federal Reserve learned a great deal from the impact of the attacks on monetary policy and the stress on the sophisticated payment systems that support the U.S. economy, and "our efforts to further bolster the operational effectiveness of the Federal Reserve and the strength of the financial infrastructure continue today," he said.