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Bloomberg
Former Federal Reserve Chairman Alan Greenspan said Wednesday that global central bank efforts to combat the global economy may be hamstrung by volatile stock markets.
"I think they [global central banks] "Greenspan said, in an interview on CNBC," Greenspan said in an interview on CNBC.
"If we get major stock market adjustments, we're going to feel it in the economy," he said. He said economists did not know as much as they should about the impact of stock market drops on the economy.
Asked if he was predicting a stock-market correction, Greenspan replied: "If you are a chartist, you are probably getting a little nervous the way the markets arehave." But he said investors are sophisticated and aware of the risks.
In the interview, Greenspan is a recent phenomenon in the life of the economy.
Read: Ex-Fed boss Greenspan says 'there is no barrier' to Treasury yields falling below zero
This has created an enormous desire for savings. 30-year Treasury bond yield and rise
TMUBMUSD30Y, + 1.45%
has fallen below 3%, he said.
"People are looking for 20 years from now, as they are going to have a value."
Stocks were higher on the potential easing of political tension in Hong Kong. The S & P 500 index
SPX, + 1.08%
finished up 31.51 points to 2.937, completely reversing its decline on Tuesday.
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