Former Federal Reserve chief, Alan Greenspan discussed with Bloomberg how he thinks the Federal Reserve and the U.S. economy will shape up in 2015. He is not optimistic that OPEC will alter its policy and cut production to regulate prices. Where oil prices will go after having been cut in half in 2014 is a “coin toss” said Greenspan. While there has been a cut back in drilling and in oil investment, it is unlikely oil will move dramatically upward. He doesn’t think, however, that oil prices will affect the Federal Reserve’s decision to raise interest rates.
Stocks may get hit from the rise in interest rates, but it change probably isn’t going to be as severe as many feared it would be. However, a correction is likely. Greenspan noted a rise in commercial and industrial loans and that more money is going out in to the marketplace. Concerning the general financial picture, Greenspan said U.S. demand is weak, and demand in Europe is worse; “The U.S. is doing better than anyone else, but we are not doing all that well.”