Former Fed Chairman, Alan Greenspan, expressed serious concern with the future of US monetary policy in a meeting with the Council on Foreign Relations Wednesday. He stated that the Fed’s quantitative easing program “fell short of its goals”, failing to reduce unemployment and reinvigorate the economy. With the third round of quantitative easing scheduled to end this week, he argues that the Fed will not be able to bring easy-money policies to a complete halt without “trouble”.
In a discussion regarding the Fed’s balance sheet and the price of gold at the New Orleans Investment Conference this past weekend, Alan Greenspan made these remarks:
The Fed’s balance sheet is a pile of tinder, but it hasn’t been lit…inflation will eventually have to rise.
Gold has always been accepted without reference to any other guarantee.
Where will the price of gold be in 5 years?
Renowned investor, Axel Merk, reports on the conference and his insights into Greenspan’s comments in his latest article, Greenspan: The Price of Gold Will Rise.
For more on Alan Greenspan’s doubts regarding the outcome of the Federal Reserve’s bond buying program, read:
Former Fed Chief Greenspan Worried About Future of Monetary Policy, The Wall Street Journal