THE ECONOMY.(TO THE POINT)

Greenspan says euro isn't strong because U.S. better investment

Fed Chairman Alan Greenspan says Europe's tougher regulations and labor laws make the U.S. more competitive. And markets expect better productivity gains in the U.S. He says that's why capital flows to the U.S., lifting the dollar vs. the euro.

Productivity will likely rise slightly in Q4, Greenspan says.

Fed Gov: We don't target stocks

But policy-makers do weigh stock prices' impact on the economy along with many other indicators, said Edward Gramlich. He said the "wealth effect" tied to stock prices needs more study.

Fed: No U.S., Japan comparison

Slumps in each country are "fundamentally different," Philadelphia Fed President Anthony Santomero said. Japan has "ongoing structural problems" like a weak banking system, he said. He expects rate cuts to be more effective in the U.S. than they have been in Japan.