Greenspan, the former chairman of the Federal Reserve, said a few days ago that the Fed will use continuous aggressive monetary policy to deal with inflation. The "most likely outcome" is that the United States will fall into an economic recession in 2023.
Regarding the recent decline in some US inflation data, Greenspan pointed out that such a decline is "too little, too late."
The fall in inflation data "may be a temporary lull" while high inflation may "explode again".
In addition, on January 4 local time, the Federal Reserve announced the minutes of the latest monetary policy meeting held in December 2022.
The minutes showed that Fed officials still expected to "continue to raise interest rates" in 2023.
Greenspan pointed out that the Fed's continued aggressive monetary policy has damaged the credibility of the Fed, and in the future "it will not be able to make major policy adjustments to avoid economic recession."
The St. Louis Federal Reserve Bank of the United States also recently released a report stating that in October 2022, more than half of the states in the United States have shown signs of slowing economic activity. .
The report released by the Federal Reserve Bank of San Francisco recently also showed that some economic data indicates that the US economic recession "may begin within about eight months".