The nation's top central banker is warning of economic troubles ahead if some things don't change.
Federal Reserve Chairman Alan Greenspan tells an economic conference that creeping trade protectionism and bloated budget deficits pose a risk to the long-term economic vitality in the U-S.
Greenspan says at risk is the increased flexibility of the economy,
which has fostered extraordinary resilience to shocks.
The Fed chief says maintaining economic flexibility is especially important to deal with what he calls some of America's current economic imbalances: the swollen trade deficit and the housing boom.
In the speech, Greenspan also worries about what will occur as interest rates rise. The Fed has been raising interest rates as it tries to guard against inflation.
Greenspan's speech was to a conference titled "The Greenspan Era: Lessons for the Future."
The Fed chief, who has been at the central bank's helm for 18 years, plans to step down in just five months.