Are Double Digit Rates Coming?

Former Federal Reserve Chairman Alan Greenspan said in an interview published on Monday the Fed would have to raise interest rates to double-digit levels in coming years to thwart inflation.

But double-digit rates, which have not been seen since the 1980s, would not be a long-term fixture, Greenspan said in an interview with USA Today conducted on Friday.

"Double digit is something that is likely to happen for a short period of time," he said, adding it was hard to predict when such a big rate increase would be needed.

The U.S. central bank meets on Tuesday and is widely expected to cut the benchmark federal funds rate by at least a quarter-percentage point to help the economy weather a housing downturn and credit crunch.