Fox Business: Alan Greenspan Warns on Rising Budget Deficits: 'We Need Very Significant Changes!'

Article by Megan Henney in Fox Business

If Congress does not reign in the ballooning budget deficit, inflation in the U.S. will begin to rapidly increase, former Federal Reserve Chairman Alan Greenspan warned on Thursday.

"Unless we bring those extraordinary budget deficits under control, history tells us this is going to be a much more rapid rate of price increases than we’ve seen," Greenspan told FOX Business.

The warning from Greenspan, who led the Fed from 1987 to 2006, comes as the U.S. federal debt has grown by about $3 trillion since President Trump took office. At the beginning of February, Trump proposed a staggering $4.8 trillion budget that would be funded in part by cuts on Medicare and Medicaid.

A number of Democratic presidential candidates are also campaigning on a slate of multitrillion-dollar plans, including Medicare-for-all, aimed at transforming the country and its economy.

"This is going to be a very significant problem," Greenspan said. "Nobody wants to cut spending or raise taxes. But if you look at the data that the Congressional Budget Office put out, we need very significant changes."

According to a recent Congressional Budget Office report, the U.S. government's budget deficit is projected to surpass $1 trillion in 2020.

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