Greenspan Upbeat on Economy
Jul. 16, 2002
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WASHINGTON (AP)_ Federal Reserve Chairman Alan Greenspan told Congress Tuesday the economy is on the road to full recovery but will keep feeling the effects of last year's recession and fallout from investors' and consumers' loss of confidence in corporate America.
``The effects of the recent difficulties will linger for a bit longer but as they wear off, and absent significant further adverse shocks, the U.S. economy is posed to resume a pattern of sustainable growth,'' Greenspan told the Senate Banking Committee.
Delivering his semiannual report on the economy, Greenspan struck a more upbeat and reassuring tone than he had earlier this year.
He said he and his Fed colleagues now expect the economy this year to grow between 3.50 percent and 3.75 percent when measured from the fourth quarter of 2001. That's stronger than the the 2.5 percent to 3 percent pace forecast in February.