Alan Greenspan: "US Economy's Biggest Concerns Are Inflation and Fiscal Deficit"

Alan Greenspan, former Chairman of the U.S. Federal Reserve (Fed)

[Asia Economy Reporter Jeong Hyunjin] Former U.S. Federal Reserve (Fed) Chairman Alan Greenspan identified inflation and government fiscal deficits as the most concerning factors in the current U.S. economy.

In an interview with CNBC on the 10th (local time), former Chairman Greenspan said, "In my view, the inflation outlook is unfortunately negative," adding, "This is essentially the result of government fiscal spending hindering private investment and productivity improvement."

This is the first time former Chairman Greenspan has given a TV interview since the COVID-19 outbreak in March. Regarding COVID-19, Greenspan said, "We know very little about it, so it feels like a big deal."

Former Chairman Greenspan also diagnosed the government fiscal deficit situation, stating, "The federal government's spending imbalance is out of control." The U.S. government's fiscal deficit for the 2020 fiscal year stood at $2.45 trillion as of July, a result of increased budget spending to support economic recovery following COVID-19 lockdown measures.

Greenspan has long lamented the fiscal deficits caused by government spending on Social Security, Medicaid (medical support for low-income groups), and Medicare (medical support for the elderly). He pointed out, "We are well aware of the enormous growth in the retirement sector, but the scale of the fiscal deficits ahead is underestimated."

Furthermore, regarding the average inflation targeting policy recently adopted by the Fed, he said, "I do not want to get involved. In my judgment, it has been going well so far," avoiding specific comments.

This content was produced with the assistance of AI translation services.