Greenspan sees ‘one-third’ chance of recession

<center>ALAN GREENSPAN</center> /
ALAN GREENSPAN /

WASHINGTON – The U.S. has a “one-third probability” of entering a recession this year, former Federal Reserve Chairman Alan Greenspan, 81, said in an interview yesterday, according to Bloomberg News.

“We are in the sixth year of a recovery; imbalances can emerge,” he said. “Ten-year recoveries have been part of a much broader global phenomenon. The historically normal business cycle is much shorter.” Thus, the current expansion is unlikely to be as long as its decade-long predecessor.

“It’s possible that we can have a recession at the end of this year,” said Greenspan. His successor, Ben S. Bernanke, 53, declined to comment.

After leaving office a year ago, Greenspan said, “I was aware … that if I stayed public, I could make it difficult for Ben,” so he strove to stay out of the public eye. “For the most part, it has worked. I was beginning to feel quite comfortable that I was fully back to the anonymity I was seeking.”

- Advertisement -

No posts to display