Catherwood LibraryILR School

A little over a week ago, Federal Reserve Chairman Alan Greenspan was counseling extreme caution in what he felt could be a slow turn around that was just starting to pick up following the economic downturn in the second half of 2001. Speaking before Congress yesterday, however, Mr. Greenspan cited new data in announcing that, while caution is still necessary and the increases in spending by businesses and consumers are still unknown quantities, the recession is over and a post-recession expansion already well begun. Among the encouraging economic indicators are an unexpectedly high growth rate this quarter, massive productivity gains at the end of 2001, an increase in retail sales last month that was the largest in two years, and a drop in first time applications for unemployment insurance over the past four weeks to the lowest level in almost a year.