Warning on US deficit from Fed - papers 26 February

clock

FEDERAL RESERVE chairman Alan Greenspan has warned the country's politicians that unpopular steps must be taken to ensure the US economy does not suffer from a pending federal deficit crisis.

The Daily Telegraph reports the comments are the strongest yet on the deficit spending built up by the Bush administration – this year predicted to be more than $520bn. Greenspan refers to demographic change as the driver of continued unsustainable deficits in future, and the need for politicians to look at cutting back on so-called social security payments on items such as healthcare. Greenspan also warned the theory the Bush administration tax cuts would enable the country to grow its way out of debt was wrong, and added that encouraging consumers to take on debt now could harm grow...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Crypto investors receive 40 times more HMRC tax warnings than stock traders

Crypto investors receive 40 times more HMRC tax warnings than stock traders

Data shows enforcement activity shift

clock 19 March 2026 • 2 min read
Wrestling with the idea of a new world order? Try European smaller companies

Wrestling with the idea of a new world order? Try European smaller companies

'Let me try to explain the case for calm'

David Walton
clock 16 March 2026 • 4 min read
Low-cost platforms spur one in three UK adults to invest

Low-cost platforms spur one in three UK adults to invest

Trading 212 the main beneficiary

Michael Nelson
clock 12 March 2026 • 2 min read