US boom to end, warns Greenspan

ALAN GREENSPAN, the chairman of the US Federal Reserve (pictured), warned yesterday that the "truly phenomenal" performance of the American economy could not last for ever.

The tight jobs market posed a risk of higher inflation, he said in a speech. "There are imbalances in our expansion that, unless redressed, bring this long run of strong growth and low inflation to a close." The warning sent both bond and share prices lower yesterday morning.