Greenspan Takes Issue With Yellen on Fed’s Role in House Bubble

Bloomberg reports:

Alan Greenspan disputed suggestions by his former central bank colleague and current San Francisco Federal Reserve Bank President Janet Yellen that the Fed could have headed off the housing bubble by raising interest rates.

“The general notion the Fed was propagator of the bubble by monetary policy does not hold up to the evidence,” the former Fed chairman said in an interview today on Bloomberg Television’s “Political Capital With Al Hunt.”

Alan Greenspan: defender of central bank central planning failure.