Greenspan Buoyant on Jobs Outlook
Federal Reserve Chairman Alan Greenspan, in his most upbeat assessment of the U.S. economic outlook in years, said yesterday that the economy should soon start producing the kind of job growth that has been missing since the end of the 2001 recession.</br></br>Significant employment gains would provide a critical missing element of the nation's recovery from the recession, a period in which sluggish economic growth has given way in recent months to a sizzling expansion, climbing stock prices and rising business spending. An improving job market would also provide a big political boost to President Bush as he heads into an election year.</br></br>Greenspan sounded cautious about the job market earlier this year, as the economy weathered uncertainties related to the war in Iraq, concerns about corporate scandals and the unwillingness of businesses to make new investments. But yesterday, Greenspan said the economy appears poised for sustained growth strong enough to generate more hiring.</br></br>The odds "increasingly favor a revival in job creation," the Fed chairman said, via satellite, in a speech to the Securities Industry Association in Boca Raton, Fla.</br></br>At the same time, the Fed chairman expressed dismay at projections showing large continuing federal budget deficits that could cause economic disruptions down the road.