Greenspan fears that Congress will prevent the Fed turn support program for the U.S. economy

The former head of the U.S. Federal Reserve (Fed) Chairman Alan Greenspan told of his fears about what Congress will prevent the central bank somewhat curtail its monetary policy stimulus and that inflation may "overwhelm" the bond market.

"I am concerned about the policy of the United States, whether Congress will feel comfortable after that, when the Fed refuses to incentives" - quoted by Bloomberg Greenspan's words, addressed to the Tokyo clients Deutsche Bank Securities Inc. Later he added that "if inflation would raise her head, she overwhelm the market long-term capital."



Former Fed chief also warned that the U.S. must cope with a "very dangerous" level of debt. Greenspan also pointed out that his successor, Ben Bernanke and his team have until the end of the year until the moment when inflation becomes a danger.

"Our model suggests that in the first months of next year inflation will fall below the level of 1% on an annualized basis, before starting to grow", - he said. Last month, consumer prices in the United States have fallen, according to analysts surveyed by Bloomberg, by 1,7% in annual terms. Official figures will be released today.

Recall that in the past month, Greenspan suggested that recovery can begin 2.5-percent increase in the current quarter, do not eliminate the risk of "second wave of recession.

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