The Chairman of the Federal Reserve Board, Alan Greenspan, in testifying to Congress on the state of monetary policy, argued strongly against an increase in the minimum wage above the current $5.15 an hour. (President Clinton had advocated a further increase of $1 an hour.) Greenspan acknowledged that employers might be willing to pay more due to the 4.3 percent rate of unemployment. However, he feared that if the economy were to slow down, the least productive minimum-wage workers would be laid off. Teenagers would likely be affected the most.

Mr. Greenspan also spoke out against excessive executive pay. He stated that executives should be paid according to the value that they create for the shareholders. He was particularly scathing of lucrative golden parachutes given to ineffective executives.

(Updated April 1, 1999)