The return of the double dip

16 July 2003

That is not in doubt this year. Huge tax and interest rate cuts ensure that growth is in the bag. More controversial is Greenspan s optimistic assertion that the US is embarking on a period of extended growth .

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The US Federal Reserve predicted that the US economy would grow as much as 3% in 2003 as growth accelerated in the second half after a lacklustre 2% rate of expansion during the first six months of the year.

Next year, the Fed forecast in its semiannual report to Congress that the US economy would grow at between 3.5% and 5.25%, with unemployment running at about 6%.

In his testimony to Congress on Tuesday, Fed chairman Alan Greenspan said that the US could very well be embarking on a period of extended growth.

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