Greenspan Says U.S. May Be Seeing First Signs of Inflation

Former Federal Reserve Chairman Alan Greenspan said a rising U.S. debt burden could derail the current expansion and warned the tight labor market could lift inflation.

“I’m beginning to see the first signs of it,” Greenspan said about inflation during an interview on “The David Rubenstein Show: Peer-to-Peer Conversations” on Bloomberg Television. “We’re seeing it basically in the tightening of the labor markets first, which, as you know, have gotten very tight now. We’re beginning finally to see average wages rise, and clearly there’s no productivity behind it.”