In one of the first signs that the US economy could be on its way to a recovery, the chairman of the US Federal Reserve, Alan Greenspan, said on Wednesday, February 27, 2002, that he believed the economy was close to a turning point. He predicted that growth would resume at some point in 2002 after a short and shallow recession.

The comments were made while Mr Greenspan was giving Congress his half-yearly report on the future of the economy. He said that the fall in inventories should provide a boost, as factories would eventually need to raise production to restock retail outlets. Low interest rates should also encourage investment, but Mr Greenspan warned that a rebound was likely to be gradual and was dependent on firm final demand.

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