While Alan Greenspan does not see an immediate end to the continued rise in unemployment seen over Q3 2009, he is optimistic that the economy grew over the same time period despite a "pretty awful" September.
Greenspan, the former chairman of the Federal Reserve, stated his optimism that the economy had expanded during Q3 2009 during an appearance on ABC’s This Week on Sunday. Noting that only 40 percent of President Obama’s $787 billion stimulus package had been utilized since its approval, Greenspan said that the economy had enough momentum for a recovery to occur, and even adjusted his previous prediction expecting a 2.5 percent increase for the quarter.
"It looks as though it’s going to be 3 percent, possibly even higher," Greenspan said, according to CNN.com.
Greenspan was not as optimistic when it came to the unemployment rate, which exceeded forecasts and grew to 9.8 percent in September. In addition to predicting that the rate would not begin to decline until it topped 10 percent, he also threw his support behind proposed legislation that would extend unemployment insurance to workers who have been out of work for a prolonged period and had to consolidate debt after exhausting their benefits.
In September, the House of Representatives voted 331-83 in favor of a bill that would extend unemployment insurance for nearly three months to jobless workers living in states with high jobless rates.