We have closed out the second quarter and first half of 2011. Today also marks another very important day: the end of QE2 (the second round of quantitative easing).
So much uncertainty as we are still trying to figure the situation in Greece, the challenges we face with the U.S. debt ceiling. Many unknown factors leave Wall Street wondering: what's next from the central bank?
In a CNBC Exclusive, Maria Bartiromo sat down with former Federal Reserve Chairman Alan Greenspan.
Greenspan said that QE2 "had some effect on the exchange rate," but he's "ill-aware of anything that really worked." Bartiromo asked if the Fed would continue to add more stimulus; Greenspan told her he would be surprised if there was a QE3, and that "QE3 would certainly continue the erosion of the dollar."
One major force driving the U.S. economy that Greenspan highlighted was Greece. Greenspan said, "Greece impacts our economy indirectly through the financial markets. If a Greek default goes up in probability, we run into all sorts of problems." Greenspan also said a Greek default is inevitable, unless there's no fiscal consolidation of the 17 countries in the Eurozone.
When asked about the debt crisis here in the U.S., Greenspan told Bartiromo he doesn't expect resolution by August 2. Greenspan told Bartiromo, "if we were to default, our view as a 'saver of last resort' will disappear."
Donna Burton contributed to the article.
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