Central Banks
Ex-Fed Chief Greenspan Sees Dollar With ‘Tailwind’ Into 2023
- Former Fed chair flags role of quantitative tightening
- Steady contraction in dollar supply could boost currency
Alan Greenspan
Photographer: Zach Gibson/BloombergThis article is for subscribers only.
Former Federal Reserve Chair Alan Greenspan sees a monetary “tailwind” for the dollar in the coming year even in the event that US monetary policymakers slow or halt their current interest-rate hiking campaign.
“Even if, as some prognosticators expect, US inflation crests in the first half of 2023 and the Federal Reserve can slow or even stop the pace of rate increases, the US dollar will still have a monetary tailwind to support it,” Greenspan, now a senior economic adviser to Advisors Capital Management, wrote in a commentary dated Wednesday.