Greenspan: Economy is definitely sogging around the world

Former Federal Reserve Chairman Alan Greenspan told FOX Business on Friday that the global economy is unquestionably dragging even though there are no signs of a recession on the horizon.

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“It’s definitely sogging and its sogging around the world I might add,” he told Maria Bartiromo adding that “this is a sluggish economy at this stage, the long-term is unquestionably negative but there are positive signs in the short- run which suggest that we are not about to tip into a recession.”

His comments come on the heels of President Trump on Wednesday urging the Fed to make rate cuts “bigger and faster.”  The Federal Reserve in July slashed interest rates for the first time since 2008 to alleviate concerns over a slow-moving economy. However in Greenspan’s opinion the economic backdrop doesn’t have “anything to do with cutting interest rates.”

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When Bartiromo asked Greenspan about the impact of central banks around globe cutting interest rates he responded: “The Federal Reserve Bank in the United States deals with the American economic situation.”