Greenspan Cautiously Optimistic

Twice a year Alan Greenspan, Chairman of the Federal Reserve, delivers his view of the state of the economy to the House Committee on Financial Services.

Wednesday's speech was perhaps the most important insight that Greenspan has given in his long service in the job.

With global economies still in the doldrums and bad news on the wires most days, analysts and commentators were keen to hear the latest words of wisdom from the old master. The message, in essence, was simple and clear. The US recession is over, but recovery will be slow.

US stock and Treasury bond prices rallied on the news.