Former Federal Reserve Chair Alan Greenspan did a couple of interviews Wednesday and Thursday with Fox News and CNBC, saying “the economy is now sagging a bit” and that Donald Trump isn’t the first president to bash the Fed.

Greenspan told Fox News on Wednesday the corporate tax cuts and deregulation by the Trump administration have helped spur the economy, but he doesn’t expect that to continue much longer.

“The economy is now sagging a bit. It was very significantly helped by the corporate tax cuts and the deregulation,” Greenspan said. “But the third quarter and the fourth quarter of this year are going to be a lot shorter than the 4 percent we’re looking at as the most recent published number.

“So our estimates are down under 3 percent in the second half.”

Greenspan also went into great detail on the president’s treatment of current Fed Chair Jerome Powell after Trump said recently the “Fed has gone crazy” with rising interest rates. Greenspan, who served under four different presidents, said criticism of his and the Fed’s work “happened all the time.”


“You’ll find every president has an insight into how the markets work and where interest ought to be, which is always superior to that of the Federal Open Market Committee,” he said in an interview on “Squawk Box.”

Greenspan served presidents Ronald Reagan, George H.W. Bush, Bill Clinton and George Bush during his time with the Fed from 1987 to 2006.

“The best thing that you can do if you’re in the Fed is put earmuffs on and just don’t listen,” Greenspan said. “I was at the Fed for 18 ½ years. I got innumerable notes, pledges, requests, et cetera to lower rates. I do not recall a single instance where somebody in the political realm said we need to raise rates, they’re too low.”

The biggest difference between Trump’s criticisms and those of past presidents is the public nature of the comments, but Greenspan says Powell can handle it.
“Jay Powell is a first rate Federal Reserve chairman,” he said. “This guy knows what he’s doing. I’ve known him for years. He’s extremely competent. His competence is such that I don’t worry about where the Fed’s going.”