WASHINGTON (voa) – Federal Reserve Chairman Alan Greenspan says the recession in the U.S. economy is ending, but adds that growth will only be moderate in the months ahead.
The central bank chief, in his twice-yearly forecast to a committee of the U.S. House of Representatives, says the forces that have restrained the economy over the past year are starting to diminish, and that the economy is getting better. He also said labor markets are improving and job cuts have diminished.
Mr. Greenspan spoke as the Federal Reserve released a semi-annual report to Congress, which forecast real economic growth of as much as three percent this year.
The Fed chief’s comments come amid mixed news on the economy in recent days.
On Tuesday a report showed consumer confidence in the United States declined last month. Better news came Wednesday as a report showed factory orders continue to rise, indicating the manufacturing sector is pulling out of recession. But that news was offset by a separate report with U.S. home sales plunging in January at their fastest rate in eight years.
The Fed has cut interest rates several times over the past year in an effort to stimulate economic growth. Investors are heartened that Mr. Greenspan, so far, has not announced the need to raise rates anytime soon.
