The last time America, the world's No.1 economy experienced such an episode was in the 1970s and early 1980s. Stagflation occurs when the economy suffers from high inflation and high unemployment.
Greenspan pointed out that the recent hike in average wages was not supported by productivity.
In February, President Donald Trump ordered the Treasury and other financial regulators to review the banking and consumer finance rules created under Dodd-Frank, the 2010 law crafted in response to the financial crisis two years earlier.
Greenspan said on "Squawk Alley" that she just has to "grin and bear it," referring to Donald Trump's claim that Yellen is the most political person in Washington.
As controversy continues to rage over the exit of Raghuram Rajan as Reserve Bank Governor, former finance minister P Chidambaram on July 4 said he believes he had every right to speak out on issues that were not strictly within his brief
"This is the worst period I recall since I've been in public service. There's nothing like it, including the crisis... This has a corrosive effect, which is not easy [to make] go away," former Federal Reserve Chair Alan Greenspan said.
With the Fed considering a rate hike that would be the first in nine years, he said it's not evident that monetary policy is too easy because inflation is so low and full employment is only starting to emerge.
The U.S. stock market slump may represent a markdown of future growth—not only in the U.S. but around the world. The highly touted second-half economic spring-back in America looks less and less likely.
Greenspan's remarks came at an emerging- and frontier-markets-themed event filled with private equity fund managers and their investors. Greenspan said it's human nature to be overly fearful of such countries, making for investment opportunity.
Bernanke was paid at least USD 250,000 for his first public speaking engagement, in Abu Dhabi, since stepping down in January, according to sources familiar with the matter.
Although blue-chip stocks are hitting all-time high after all-time high, former Fed Chairman Alan Greenspan told CNBC Friday that "irrational exuberance" is the last term he'd use to describe today's market.
The US will likely avoid the "fiscal cliff" but it could be a bit hairy before politicians reach an agreement, former Federal Reserve Chairman Alan Greenspan told CNBC's "Closing Bell" on Tuesday.
While the Dow hitting 13,000 made big headlines earlier this week, the Nasdaq's ascent to 3,000 could be the more significant of the two psychological milestones.
Alan Greenspan feels that as a leading indicator, global oil prices are a very useful statistic. However, he added that there was no question (at this stage) that the momentum of this economy, leaving out the oil price issue, the euro problems that have emerged and very specifically and the budget problems, is really beginning to pick up momentum.