Alan Greenspan Says Inflation ‘Is Inevitably Going to Rise’ as Deficit Balloons Over $1 Trillion

Fed Chair Alan Greenspan issued his latest warning Tuesday about the fiscal situation in the U.S., saying that larger budget deficits ultimately will cause inflation.

by Jeff Cox

Former Federal Reserve Chairman Alan Greenspan warned Tuesday that inflation is going to pose a larger threat to the U.S. economy as budget deficits continue to rise.

“Right now, there’s no real inflation at play. But if we go further than we are currently, inflation is inevitably going to rise,” the ex-central bank chief said Tuesday on CNBC’s “Squawk on the Street.”

As things stand, the U.S. inflation rate for years has held below the 2% level that the Fed considers healthy for a growing economy, at least gauged by the central bank’s preferred measure.

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