Concerns about long-term health of US economy

Creeping trade protectionism and bloated budget deficits pose a risk to the US’ long-term economic vitality, Federal Reserve Chairman Alan Greenspan warned today.

“Developing protectionism regarding trade and our reluctance to place fiscal policy on a more sustainable path are threatening what may well be our most valued policy asset: the increased flexibility of our economy, which has fostered our extraordinary resilience to shocks,” the Fed chief said in a speech to an economic conference here, sponsored by the Federal Reserve Bank of Kansas City.