Ex-Fed Chief Greenspan Says US Recession Is Likely
- Wages, jobs need to soften for inflation pullback to stick
- Fed unlikely to loosen policy prematurely, wants stable prices
Alan Greenspan
Photographer: Brendan Hoffman/Bloomberg
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Former Federal Reserve Chair Alan Greenspan said a US recession is the “most likely outcome” as the central bank tightens monetary policy to curb inflation.
While the last two monthly reports showed a deceleration in consumer-price increases, “I don’t think it will warrant a Fed reversal that is substantial enough to avoid at least a mild recession,” Greenspan — now a senior economic adviser to Advisors Capital Management — said in a question-and-answer commentary on ACM’s website distributed Tuesday.