Former Fed Chairman Alan Greenspan claimed that the current Labor Market is the tightest he’s ever seen and that he expects wages to rise.
Former Federal Reserve Chairman Alan Greenspan told CNBC on Thursday the United States currently has the tightest labor market he’s ever seen.
Greenspan, 92, suggested the nearly 50-year low unemployment rate coupled with American corporations clamoring for workers will force up wages and inflation. “Ultimately prices take hold,” he said.
“This is the tightest market, labor market, I’ve ever seen, he said in an interview with “Squawk Box.” “But concurrently, we have a very slow productivity increase.”
Greenspan — who served as chairman of the Fed from 1987 to 2006, spanning four presidents — said that’s having a significant impact on GDP growth.
“And, therefore, it’s ultimately the source of populism, which has infected the United States,” he added.
Trump has bashed the Federal Reserve as of late calling it crazy that they continue to increase interest rates.