Greenspan: Recession odds growing on slowing economy

NEW YORK Thu Dec 13, 2007 7:17pm EST

Former U.S. Federal Reserve chairman Alan Greenspan speaks at the Per Jacobsson Foundation Lecture on the ''Balance of Payments Imbalances'' at the International Financial Corporation in Washington October 21, 2007. REUTERS/Yuri Gripas

Former U.S. Federal Reserve chairman Alan Greenspan speaks at the Per Jacobsson Foundation Lecture on the ''Balance of Payments Imbalances'' at the International Financial Corporation in Washington October 21, 2007.

Credit: Reuters/Yuri Gripas

NEW YORK (Reuters) - The odds of a recession in the United States are "clearly rising" due to the slowing rate of economic growth, former Federal Reserve Chairman Alan Greenspan said in an interview with National Public Radio.

"We are getting close to stall speed ... and we are far more vulnerable at levels where growth is so slow than we would be otherwise," he said. A transcript of the interview, to be aired on Friday, was made available on Thursday.

Asked about the possibility of recession, the former Fed chief said: "It's too soon to say, but the odds are clearly rising."

Earlier on Thursday, Greenspan said he raised his view of chances of a U.S. recession to 50 percent from 30 percent, according to CNBC television.

The U.S. economy grew 4.9 percent in the third quarter in real terms, but is expected to slow sharply in coming quarters.

(Reporting by Tamawa Kadoya; editing by Leslie Adler)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.