Former Federal Reserve Chairman Alan Greenspan has warned that the US economy will experience a recession due to the Fed’s tightening policies, CNBC reported.
Greenspan added: “Although the last two inflation reports have shown a slowing rate of price increase, that doesn’t change the fact that prices are still rising… Official inflation data may remain weak in the short term.” term precisely because of the methodology with which prices are measured.”
He continued: I don’t think this is enough for the Federal Reserve to reverse its monetary policy. I do not expect the Bank to ease its monetary policy out of fear of exacerbating inflation.
However, he doesn’t expect 2023 to be a volatile year.
Greenspan held the presidency of the Federal Reserve from 1987 to 2006, that is, he took over the presidency of the bank for 5 terms.
Separately, Greenspan warned that investors should be concerned about China, as it could invade Taiwan and cause a global economic crisis that would lead to a major sell-off in the market.
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