WASHINGTON AP – Just-released transcripts show the Federal Reserve was worried about the threat of deflation when it decided to cut a key interest rate by a half-point in November 2002. Then-Federal Reserve Chairman Alan Greenspan called the prospect “pretty scary.”
Those transcripts, released Friday, showed that Greenspan and his colleagues were focused on what should be done about a sluggish economy and the threat that the country could tumble into a period of deflation, something the country had not experienced since the Great Depression.
