Former Federal Reserve Chairman Alan Greenspan has warned that the US economy will suffer a recession due to the Fed’s tightening policies, CNBC reported.
Greenspan added, “Although the last two inflation reports showed a slowdown in the rate of price rise, that doesn’t change the fact that prices are still rising… Official inflation figures can remain weak in the near term just because of the methodology with which prices are measured.”
He continued: I do not think that this is enough for the Federal Reserve to reverse its monetary policy.. I do not expect the Bank to ease its monetary policy for fear of exacerbating inflation.
However, he does not expect 2023 to be a volatile year.
Greenspan assumed the presidency of the Federal Reserve from 1987 until 2006, that is, he assumed the presidency of the bank for 5 terms.
Separately, Greenspan warned that investors should be concerned regarding China, as it might invade Taiwan and cause a global economic crisis that would lead to a major sell-off in the market.
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