Former Federal Reserve Chairman Alan Greenspan warned on Tuesday that the U.S. could be headed into "stagflation" and that it was unlikely the current market would go higher.
“It would be very surprising to see it sort of stabilize here, and then take off again,” Greenspan said in an interview with CNN. Markets could still go up, but “at the end of that run, run for cover.”
Trump, who hasn't missed a chance to credit himself with America's skyrocketing markets is already positioning himself to be able to blame fed chief Jerome Powell for the looming collapse.
In the CNN interview, Greenspan said the U.S. could be headed into “stagflation,” an economy characterized by high inflation and high unemployment such as was seen in the 1970s.
“How long it lasts or how big it gets, it’s too soon to tell,” said Greenspan.