Economics
Greenspan Warns of ‘Extremely Imbalanced’ Path of U.S. Deficit
- Former Fed chief cites risk shortfall will spark inflation
- ‘What matters is the consequences,’ he says in an interview
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While American politicians on both sides of the aisle have been mostly silent as the U.S. deficit swells toward $1 trillion and beyond, former Federal Reserve Chairman Alan Greenspan says the lack of attention won’t last.
“This is an extremely imbalanced situation,” Greenspan, who led the Fed from 1987 to 2006, said in a phone interview. “Politically, budget deficits really don’t matter. What matters is the consequences.”