Greenspan: Slower Global Growth a Risk for U.S.

Thursday, July 31, 2008 4:03 PM

WASHINGTON -- Former Federal Reserve Chairman Alan Greenspan said Thursday that a slowing global economy may push the United States into recession, though it is not yet in one.

"I think the data at this stage in the United States are not ... suggesting recession," Greenspan said in an interview on CNBC television. But he added: "We're right on the brink and I would be more surprised if we didn't (have a recession) than if we did, given the financial state."

Greenspan said that companies were controlling inventories effectively and said that "at this stage, I think they are the major reason why in the very short term we're fending off inflationary pressures."

However, he noted that with jobless claims rising and growth overseas slowing, it would be hard for the United States to avoid slipping into recession.

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