Federal Reserve Chairman Mr Alan Greenspan said today it was "imperative" that emerging protectionism be vanquished before it hurts a globalisation that is key to the US coping with a record trade gap.
"Should globalisation be allowed to proceed and thereby create an ever more flexible international financial system, history suggests that current imbalances will be defused with little disruption," he said in remarks prepared for a monetary conference sponsored by the Cato Institute and the Economistmagazine.
"Some clouds of emerging protectionism have become increasingly visible on today's horizon," he said, saying this could "significantly erode" the flexibility of the global economy.
"Consequently, it is imperative that creeping protectionism be thwarted and reversed," the Fed chief said.