Fedipus Rex

Bloomberg writes on the growing rift between the current Fed and the former chariman:

Former Federal Reserve Vice Chairman Alan Blinder said Alan Greenspan may be distracting investors from the Fed’s forecast that growth will strengthen this year.
Greenspan, who was Fed chairman for almost two decades until Ben S. Bernanke took over 13 months ago, said at least three times in the past two weeks that a recession is possible. He didn’t say one was likely.
“It is a little bit of a problem,” Blinder, now a professor at Princeton University in New Jersey, said in an interview. “He is sort of stepping on the message. The Fed’s message is things look pretty good and in particular we are not at all worried about a recession.”
Current Fed officials are stressing that they don’t predict a recession, even after last week’s global equities plunge and a run of weaker-than-forecast economic data. Chicago Fed President Michael Moskow said in a speech today that he’s not prepared to significantly alter his forecast for a pickup.

Posted by on March 8th, 2007 at 1:09 pm


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