Angell Says Recession Has Ended
WASHINGTON -- Federal Reserve Governor Wayne Angell on Tuesday became the latest Fed official to declare that the recession had run its course.
The rundown in business inventories is essentially over, he said, though downward pressure on residential and commercial real estate prices helped make the recession a bit longer than some previous ones.
Among other Fed officials, Chairman Alan Greenspan has been cautiously optimistic about the recession's being over.
And in recent speeches, presidents of the regional Federal Reserve banks - including Robert Parry of San Francisco and Robert Forrestal of Atlanta - have expressed confidence that the economy is growing again.
Last Friday's half-point reduction in the Fed discount rate, to 5%, was a recognition that inflation was coming down, Mr. Angell said in a television interview on the Fox network.
If the Fed had moved to lower rates before inflation were under control, long-term interest rates would rise, he said.
