The election is a factor for the Fed “but it’s not involved
in the decision-making,” Greenspan explained. Fed officials “are
aware that there is an election out there. They would prefer not
to do something during an election. But, if it is called for, it
is done,” he said.
In a wide-ranging interview, Greenspan said:
- He is worried about 1970s style 'stagflation'
- He's still concerned about the Brexit spillover and how it is too soon to determine the impact of Brexit.
- Negative rates seen in Europe and Japan are not good. "If you have negative interest rates, and stay too long, a number of the financial intermediaries drop out. And they are on the edge," he said.
Meanwhile, Greenspan himself does have his critics. For example, Newsmax Finance Insider Jeff Snider contends that "Greenspan’s credentials say nothing; his track record is all that should matter when judging the worth of his opinions."
Greenspan "doesn’t know what he is talking about and there is a mountain of evidence, including his own words, that show that he never did," Snider, in a recent blog, explained.
"We are stuck in this economic depression not just because of his past tenure, but more so now because constant reverence prevents acceptance of these facts. The recovery doesn’t start until the “maestro’s” legend dies, and with it all the confusion and misconstruction about how markets and the economy actually work," Snider wrote.
(Newsmax wire services contributed to this report).
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