Greenspan Again Calls on Washington for Sound Economic Policy

August 26, 2005

Today at a Fed conference, Federal Reserve Chairman Alan Greenspan continued his clear message that the U.S. Congress and President Bush should push policies that lower trade barriers and promote sound fiscal policy.

Members of Congress and the American people need to realize that this will help lead us down the path of economic prosperity, not doing what is politically expedient in order to win the next election.

As today’s New York Post reports:

Creeping trade protectionism and bloated budget deficits pose a risk to the United States’ long-term economic vitality, Federal Reserve Chairman Alan Greenspan warned Friday.

“Developing protectionism regarding trade and our reluctance to place fiscal policy on a more sustainable path are threatening what may well be our most valued policy asset: the increased flexibility of our economy, which has fostered our extraordinary resilience to shocks,” the Fed chief said in a speech to an economic conference (in Jackson, WY), sponsored by the Federal Reserve Bank of Kansas City.

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We continue to wonder, however, why politicians will forever sing the praises of Mr. Greenspan in front of the cameras, yet only sparingly follow his advice when actually making policy.

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