Greenspan warns of higher long-run inflation
NEW YORK, Sept 14 (Reuters) - Former Federal Reserve Chairman Alan Greenspan warns in his memoir that if the Fed is to keep the inflation rate between 1 and 2 percent in coming years it could be required to force interest rates much higher, according to a report in the Wall Street Journal.
However, Greenspan said he fears the Fed will face "populist resistance from Congress, if not from the White House" to its policy of maintaining price stability.
He said if the Fed succumbs to that pressure, the inflation rate could rise to an average of 4 to 5 percent by 2030, and 10-year Treasury yields will rise to at least 8 percent with the potential to go "significantly higher for brief periods," the newspaper report said.
<------- Inflation, recession, doom days... he is still earning good money from his memoir. Wish he started writing his memoir earlier.. so he could have warned us on the subprime effect then.. heh heh
NEW YORK, Sept 14 (Reuters) - Former Federal Reserve Chairman Alan Greenspan warns in his memoir that if the Fed is to keep the inflation rate between 1 and 2 percent in coming years it could be required to force interest rates much higher, according to a report in the Wall Street Journal.
However, Greenspan said he fears the Fed will face "populist resistance from Congress, if not from the White House" to its policy of maintaining price stability.
He said if the Fed succumbs to that pressure, the inflation rate could rise to an average of 4 to 5 percent by 2030, and 10-year Treasury yields will rise to at least 8 percent with the potential to go "significantly higher for brief periods," the newspaper report said.
<------- Inflation, recession, doom days... he is still earning good money from his memoir. Wish he started writing his memoir earlier.. so he could have warned us on the subprime effect then.. heh heh
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