WASHINGTON (CNN) — The U.S. economy will grow more than expected in the third quarter, but unemployment also will continue to increase and will pass 10 percent, former Federal Reserve Chairman Alan Greenspan said Sunday.
Greenspan told the ABC program “This Week” that he expected 3 percent growth in the third quarter, up from the 2.5 percent he previously predicted. However, he said a “pretty awful” September employment report released Friday showed the jobless rate continued to climb.
A slowing or halt in job losses is different from reversing the rise in unemployment, Greenspan noted, adding that the nation’s unemployment rate — currently 9.8 percent — is “going to penetrate the 10 percent barrier before heading down.”
That prediction matches previous comments by President Obama and others, who say that unemployment is a lagging indicator in an economic recovery.
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