Initial signs of recovery to be evident by first quarter

The US economy will return to growth in 2002 after a difficult 18 months that have seen equities underperform. The monetary stimulus aggressively injected by the Federal Reserve over the past 12 months is finally expected to bear fruit over the course of the year, but opinion is divided over when this return to growth will materialise. David Rough, group director of investments at Legal & General Investment Management, says Alan Greenspan is likely to keep the Fed Funds rate below 2% for at least the first half of the year to maximise the potential for growth. With weak oil prices ...