Greenspan: Dissent Shows FOMC Process Is Working

The transcript features a discussion with Dr. Greenspan on the role of dissents at the FOMC, the global bond market's sustainability, speculative elements in the bond market, and inflation trends in the US. Greenspan emphasizes the importance of dissents for healthy debate within the Fed and discusses the unsustainable nature of the current bond market due to historically low interest rates. He also highlights the potential for inflation due to rising unit labor costs and tightening labor markets.

What does Dr. Greenspan suggest about the role of dissents in the FOMC?

• They are irrelevant to the market's perception.

• They are discouraged to maintain a unified front.

• They show that the decision-making process is working.

• They indicate a lack of consensus and are negative.

According to Dr. Greenspan, what is the effect of central banks holding rates low on the bond market?

• It has no significant effect.

• It decreases bond prices.

• It leads to a bond market rally.

• It stabilizes the bond market.

What does Dr. Greenspan compare the bond market to, in terms of its speculative nature?

• A currency exchange rate.

• A stable investment.

• A stock market indicator.

• A government policy.

What does Dr. Greenspan suggest about the future of long-term interest rates?

• They will remain low indefinitely.

• They are likely to increase over time.

• They will decrease further.

• They are controlled by central banks.

Which interest rate does Dr. Greenspan consider critical for understanding market trends?

• The thirty-year bond.

• The ten-year note.

• The five-year note.

• The one-year note.

What economic indicator does Dr. Greenspan identify as a potential trigger for a bond market correction?

• Decreasing employment rates.

• Rising unit labor costs.

• Stable profit margins.

• Decreasing inflation rates.

What does Dr. Greenspan say about the relationship between wage increases and productivity?

• Wage increases are unrelated to productivity.

• Productivity must increase to absorb wage increases.

• Wage increases automatically lead to higher productivity.

• Productivity decreases as wages increase.