The COVID-19 coronavirus lockdown is having a huge impact on the US economy, but on the reopening it is very likely that we will see a strong comeback.
“The 2nd quarter is pretty awful,” former Fed Chairman Alan Greenspan said Tuesday in a TV interview. “But if the issue of the virus works its way as we expect, we probably have a very strong 3rd Quarter. But my concern is the 4th Quarter and beyond.”
Mr. Greenspan chaired the Fed from Ys 1987 to 2006, he cautioned that the mounting burden of an aging population on the cost of US retirement benefits will crowd out investment, lower productivity and hobble the economy in the years ahead.
“I think it is going to be a dominant force in slowing down the rate of growth,” he said.
The FOMC began its scheduled meeting earlier Tuesday, has slashed interest rates to nearly Zero and unleashed an array of emergency lending facilities to limit the harm of the coronavirus chaos.
That unprecedented action has prompted critics to warn about moral concerns after one of its lending facilities included limited purchases of high-yield debt, which critics say could encourage risky investment in the future.
Mr. Greenspan said “I agree it is an issue, but there are lots of issues we can deal with without really being concerned about.”
Have a healthy day, Keep the Faith!