Ex-Federal Reserve Chairman Alan Greenspan: I've never seen anything like this

Former Federal Reserve Chairman Alan Greenspan tells CNN's Julia Chatterley the Federal Reserve is doing a "splendid job" managing the pandemic. He also weighs in on passing a stimulus package and has some advice for President-elect Joe Biden.

Posted: Nov 20, 2020 9:40 AM
Updated: Nov 20, 2020 9:40 AM

The incoming administration of President-elect Joe Biden has its work cut out for it, and getting the virus under control should be the number one priority, according to former Federal Reserve Chairman Alan Greenspan, a move that will help save the economy.

"I've never seen a particular situation during my professional experience anything like this," the 94-year-old Greenspan told CNN's Julia Chatterley on her show First Move on Thursday.

Although he wasn't working in finance when he was a boy, he lived through the Great Depression.

Greenspan headed the Fed from 1987 to 2006, the second-longest tenure in that role. (He missed being first by four months.)

Although multiple drug makers have announced encouraging results from their vaccine trials, infection rates are still on the rise around the world, as well as in the United States.

Trying to forecast where the virus is going at this stage is little more than a guess, Greenspan said. It might be possible to get back to normal by next spring, he added, but only if the virus's spread is controlled and stays that way.

Current Fed Chairman Jerome Powell has repeatedly said that the economy will fully recover only when the Covid-19 pandemic is under control. Even then, we likely won't go back to the economy we knew before the pandemic hit.

Millions of Americans still need benefits to make ends meet because they have lost their jobs due to the crisis and are unable to find new ones.

The government spent trillions through the CARES Act in the spring, but Washington hasn't been able to agree on any additional stimulus since then. This must change, Greenspan and many economists agree.

"I think Pelosi has a particular set of ideas to confront the problems right now in front [that] seem quite credible to me," the former central banker said. "All they have to do is implement them."

As long as there is general agreement that something needs to get done, passing a new stimulus package should be easy, Greenspan said. But in a situation this precarious, one should always ask what might go wrong.

"I'm not convinced at all that we have enough information to know how to deal with this type of problem," Greenspan said, adding that there could be unintended consequences for society.

California Coronavirus Cases

Data is updated nightly.

Cases: 1114524

Reported Deaths: 18726
CountyCasesDeaths
Los Angeles3645207438
San Bernardino845311129
Riverside806761400
San Diego71648968
Orange696941554
Kern38316445
Fresno35973471
Sacramento33133546
Santa Clara30676463
Alameda27485499
San Joaquin24649503
Contra Costa22412258
Stanislaus20370416
Tulare19752303
Ventura18040174
Imperial15053353
San Francisco14445158
Monterey13886113
San Mateo13203169
Sonoma11428155
Merced10986176
Santa Barbara10922133
Kings1003886
Solano934980
Marin7518128
Placer577867
Madera571480
San Luis Obispo561835
Yolo419975
Shasta409542
Santa Cruz389827
Butte366459
Napa275717
Sutter263813
El Dorado19304
San Benito174115
Yuba173210
Lassen14803
Tehama143523
Mendocino138522
Nevada10189
Lake83218
Glenn8296
Humboldt7309
Tuolumne7088
Colusa6426
Mono4993
Siskiyou4951
Amador45016
Calaveras43421
Inyo28316
Del Norte2731
Plumas1770
Trinity1130
Modoc1110
Mariposa1042
Alpine420
Sierra170
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Chico
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Mostly sunny & dry weather is ahead for your Monday. The potential for showers will return to mostly mountain areas late Tuesday night through Wednesday .We'll be drying back out for Thanksgiving.
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