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Greenspan Backs the Case for the Fed Taking Out an Insurance Rate Cut

  • Former Fed chairman speaks in interview with Bloomberg TV
  • Renews criticsm of Trump tariffs: no one wins a trade war
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Former Federal Reserve Chairman Alan Greenspan says an insurance interest-rate cut by the Fed makes sense. Source: Bloomberg)
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Former Federal Reserve Chairman Alan Greenspan endorsed the idea that the U.S. central bank should be open to an insurance interest-rate cut, to counter risks to the economic outlook, even if the probability of the worst happening was relatively low.

“Forecasting is very tricky. Certain forecast outcomes have far more negative effects than others,” he told David Westin in a Bloomberg Television interview Wednesday. “It pays to act to see if you could fend it off.”