Greenspan Upbeat About US Economy Amid Market Turmoil

17 July 2002

Despite tumbling stock prices, Federal Reserve chairman Alan Greenspan is confident the US economy is on course for recovery.

“The fundamentals are in place for a return to sustained healthy growth,” he declared in his half-yearly report to the Senate Banking Committee, though he cautioned that “the effects of the recent difficulties will linger for a bit longer.”

Assuming the economy sustains no further significant blows, Greenspan believes it will grow 3.5% to 4% next year.

Although his comments rallied markets briefly, they could not prevent the Dow Jones industrial average falling 166.08 points (1.9%) over the day, the seventh session in a row it has dropped.

Data sourced from: Washington Post Online; additional content by WARC staff