Federal Reserve Chairman Alan Greenspan says the economy can adjust to rising oil prices, as long as they don't spiral much higher.
In remarks prepared for the National Italian American Foundation, Greenspan says the surge in energy costs will have far less of an impact on the economy than the shocks of the past. He says trouble would brew if energy prices continue to rise.
He predicts that there will be more exploration and production and increased fuel efficiency.
Crude oil futures have been trading at record levels lately. After adjusting for inflation, however, Greenspan says they're only about three-fifths as high as the peak seen in 1981.