By Alan Murray and David Meyer
February 1, 2018

Good morning.

The Federal Reserve voted unanimously to keep its key interest rate unchanged at 1.25-1.5% yesterday, in Janet Yellen’s last act before handing over the reins to Jay Powell on Monday. But Powell may be in for a wild ride if his predecessor Alan Greenspan is to be believed. Greenspan, 91, told Bloomberg TV yesterday that both the stock and the bond markets are “bubbles.”

“At the end of the day, the bond market bubble will eventually be the critical issue, but for the short term it’s not too bad,” Greenspan said. “But we’re working, obviously, toward a major increase in long-term interest rates, and that has a very important impact, as you know, on the whole structure of the economy.”

Greenspan tied the problem to rising government deficits, and said he was surprised President Donald Trump didn’t say how he was going to pay for his infrastructure spending in Tuesday’s State of the Union address.

In other news, the iconic American copier company, Xerox, is getting folded into Japan’s Fujifilm and—after 111 years—will cease to exist. And the iconic American publishing company, Time Inc., ended its 95-year run yesterday. As of this morning, I’m a proud employee of Meredith Corporation (but still up early writing this newsletter.)

More below.

Alan Murray
@alansmurray
alan.murray@fortune.com

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