“Former Federal Reserve Chairman Alan Greenspan told CNBC on Friday that the central bank should taper its $85 billion a month bond-buying even if the U.S. economy is not ready for it.
He said in a “Squawk Box” interview that near-zero interest rate policy at the Fed has helped stock prices, but the markets need to be prepared for faster-than-expected rise in rates.
If the Fed moves too quickly in reining in its accommodative policies, it could shock the market, which is already dealing with a very large element of uncertainty.
Greenspan said that he’s not sure the markets will allow an easy exit and they may not give policymakers the leeway might like….”
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