US economy ‘out of whack,’ headed for downturn: Alan Greenspan
Former Federal Reserve Chairman Alan Greenspan on Federal Reserve policy, the outlook for the economy, the impact of the tax reform legislation, government spending and the Trump administration's trade talks with China.
Former Federal Reserve Chairman Alan Greenspan told FOX Business on Thursday the U.S. economy is poised to slow down in the coming years.
“We are moving towards stagflation and in the process of moving in that direction, it feels good, but it’s a false dawn,” Greenspan told Maria Bartiromo on “Mornings with Maria.”
While signs of a slowdown are already evident, he said the “longer-term does not exhibit a particularly powerful growth rate.”
Greenspan said demographic changes, a huge omnibus spending bill and higher interest rates are slowing the economy down, despite it reaping the benefits of President Donald Trump’s tax cut plan and regulatory rollbacks.
“The fiscal system is out of whack,” the former Fed chair said. “And while I approve wholeheartedly of the corporate tax cut and deregulation, the corporate tax cut unquestionably causes the deficit to rise and we are not funding it by other means.”
He added, “as long as the funding is not there, productivity cannot grow and accelerate