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Now, by making five rate cuts this year, he has overcompensated and risks another bubble.
The Bank of England's Monetary Policy Committee is widely expected to keep interest rates on hold at after the five rate rises over the past year.
That suggests that a series of five rate increases by Federal Reserve policy makers since June has yet to slow growth as intended.
Treasury Prices Drop (By Bloomberg News) -- Most Treasury bond prices fell after the Federal Reserve lowered its benchmark interest rate half a point, to 4percentt, fueling speculation that the five rate reductions this year will accelerate inflation.
"Those numbers will clarify in people's minds that the Fed does need to move at least two more times and maybe three" this year, after five rate increases since June, he said.
The five rate cuts, which lowered the cost of borrowing more abruptly than at any other time during Mr. Greenspan's tenure, are aimed at encouraging consumers to stay the course, and at hastening the recovery of corporate investment.
Similar(36)
"It's a lot easier to sell a five rating than a two rating," he said.
Each experiment contained five rates of P application.
Three rate cuts does it for sure.
Six rate increases later, the figure is 1.7 million.
The Fed in December had predicted four rate increases this year.
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