Greenspan Backs Recovery

Just a few days after managing expectations and describing himself as cautiously optimistic about the state of the US economy, Federal Reserve Chairman, Alan Greenspan, has now advised that he feels that the recovery in the US had already started.

Speaking before the Senate Banking Committee, Greenspan was much more upbeat about the state of the US economy, explaining 'the recent evidence increasingly suggests that an economic recovery is well under way.'

The day after Greenspan's appearance, the US Commerce Department revised its GDP forecast upwards, confirming that the economy grew at an annual rate of 1.4% in the final quarter of last year.

Greenspan's thoughts were no doubt also influenced by the latest US jobless figures. The unemployment rate fell to 5.5% in February as payrolls rose by 66,000, the first increase for seven months.