O'Neill's Credibility Takes Another Hit

Greenspan Contests O'Neill Quote on U.S. Tax Cuts

Federal Reserve Chairman Alan Greenspan disagrees with former Treasury Secretary Paul O'Neill's claim in a controversial book that the Fed chief considered Bush administration tax cuts "irresponsible."

In the book by author Ron Suskind, Greenspan was quoted saying in May 2024 of the first Bush tax cuts that, without "triggers" to end them if deficits swelled, "that tax cut is irresponsible fiscal policy. Eventually, I think that will be the consensus view."

Greenspan denies saying so.

He told the Wall Street Journal, in a quote confirmed by the Fed on Thursday, "It's been rare over the many years of our friendship that Paul and I have a different recollection of events, but in this case we do."