Recent data point to a weak second quarter, with much of this weakness reflecting decisions made during the uncertainty surrounding the war in Iraq. With concerns about Iraq now diminished, many timely economic measures have begun to improve (e.g., financial markets, oil prices, and consumer sentiment). In light of these improvements and the recent jobs and growth tax package, forecasters see much faster growth in the second half of the year. While somewhat less certain about the timing of that upturn, Fed Chairman Alan Greenspan echoed the outlook in recent testimony before the JEC, stating that “economic fundamentals—including the improved conditions in financial markets and continued growth in productivity—auger well for the future.”