US has 50% chance of recession, according to Greenspan

by Richard Kilner

Story link: US has 50% chance of recession, according to Greenspan

Alan Greenspan, formerly the Federal Reserve’s chairman, has said that he believes the odds on a recession hitting the US is now 50%, or higher.

Speaking to an audience in Vancouver, he said that his previous estimate of a one in three chance made a year ago had definitely worsened.

Greenspan has acknowledged that predicting when a recession could fall, and whether an economy was gripped by one, is difficult to tell.

A policy of protectionism is something that should be avoided, he has said.

The possible recession would be shallow, accoridng to Greenspan, due to the US economy’s improved resilience in recent times.

In recent weeks a string of foreign investors have poured money into US banks to shore up their finances, including the governments of China and Kuwait.