Former Federal Reserve Chairman Alan Greenspan sharply disputed the notion the U.S. was being ripped off by other countries because of its trade deficit.
The former central bank chief told CNBC that President Donald Trump has the situation “reversed” as it pertains to global trade issues.
Asked if he thought the country was in a trade war, Greenspan told CNBC’s Sara Eisen that “we’re on the edge. I think we should be very sad if we do, because the presumption is that foreigners are ripping us off. It’s nonsense.”
However, the man nicknamed “The Maestro” for the way he handled central banking policy said he does not think the tit-for-tat tariffs between the U.S. and its trading partners will put much of a dent in an economy that appears to be running at a 3 percent or more growth rate.
In fact, he expressed support for some of what Trump is doing regarding fiscal policy.
“The fact is, I happen to approve some of the policies which this current administration is doing,” Greenspan said. “The extraordinary cut in the marginal corporate tax rate was a very important thing. I never thought I would see it in my lifetime, but they pulled it off. It’s working, and it’s having an effect.”