Post-Gaming the Fed Decision with Alan Greenspan
The former Federal Reserve Chair says “the economic outlook is being significantly affected by the poor politics.”
Federal Reserve chair Jerome Powell was not dovish enough for markets. The U.S central bank brushed off the past week of market turmoil and political pressure from President Donald Trump -- raising interest rates for the fourth time this year. Policy makers signaled they may ease monetary tightening -- trimming the number of rate hikes from three to two in their forecast for 2019. On What'd You Miss This Week, Scarlet Fu along with Tom Keene got immediate Federal Reserve decision analysis from Alan Greenspan.
The former Federal Reserve Chairman offered his economic outlook. "I don't think the recession call is exactly right," he said. "But, it is certainly the case that when you look out over the horizon, the forces that have been driving productivity growth to ever slower paces up until very recently are going to continue." Greenspan cited the rise of entitlement spending as the culprit holding back the U.S. economy from increased productivity, and by extension sustained economic growth.