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Low Interest Rates Help Americans, says Greenspan - 2004-02-23

The top U.S. central banker says American households are in "good shape" financially, in spite of rising debt.

Federal Reserve Chairman Alan Greenspan told a business group in Washington Monday, very low interest rates and gains in home values make consumer debt burdens more manageable.

Many American families have refinanced their home mortgage loans with lower interest rates, sharply cutting their costs.

Experts track the financial health of American households because consumer demand drives at least two-thirds of U.S. economic activity.