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Greenspan Finds Investors Calmer

November 5, 1998

WASHINGTON (AP) _ Federal Reserve Chairman Alan Greenspan, who last month warned about fear gripping the world’s financial markets, said today he saw evidence the ``investor fright″ was lessening.

Greenspan said nothing directly in his prepared remarks to signal whether the central bank will cut interest rates again when it next meets Nov. 17. But he said he believed the panic atmosphere that gripped financial markets following the collapse of the Russian economy was abating.

He said that in the weeks after Russian essentially defaulted on billions of dollars of foreign debt, investors rushed to safe investments. That stampede sent shockwaves through Wall Street and also raised fears that Latin American countries could be the next to fall victim to the global economic crisis.

But Greenspan said today that it was entirely ``plausible that the current episode of investor fright will dissipate ... . Indeed, we are already seeing significant signs of some reversals.″

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