Former Federal Reserve chairman Alan Greenspan has played down his earlier concern about a possible U.S. recession, saying the world economy would provide a cushion, according to people attending a forum in Tokyo where he spoke via satellite.
Greenspan said growth in the rest of the world is creating demand for services from companies such as Microsoft Corp., according to Vaseehar Hassan Abdul Razack, chairman of Kuala Lumpur-based RHB Islamic Bank Bhd, who attended the meeting, hosted by Nomura Research Institute Ltd.
Greenspan in late February and early March predicted that U.S. economic growth might stagnate, a view at odds with those of Ben S. Bernanke, his successor, and other Fed officials. In a March 5 interview, Greenspan said there’s a “one-third probability” of a recession this year and the current expansion wouldn’t have the staying power of its decade-long predecessor.
The former Fed chairman didn’t mention recession, according to Anne Okko, who works in funding administration at the Nordic Investment Bank. Okko said Greenspan said the world economy is on a positive trend.
A government report reinforced that sentiment about the U.S., showing retail sales rose the most in three months in March. Sales gained 0.7 percent following a revised 0.5 percent increase in February that was larger than previously estimated.