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Former Federal Reserve Chairman Alan Greenspan on Monday said that despite the stock market's steep decline, it is still a bit overvalued. Equities are "still a bit too high...not a great deal, but somewhat," Greenspan said, in an interview on CNBC. The S&P 500 is down almost 14% from its record high hit in September. The former Fed chairman repeated his concern that the biggest risk for the economy was a return of "stagflation," or a combination of high inflation and subdued growth, last seen in the 1970s. He urged lawmakers to fund entitlement programs and lower the federal budget deficit, which is crowding out business investment and lowering gross domestic product. "Fiscal policy is a critical issue. Monetary policy is not at this stage," he said. The former Fed chairman said Rep. Alexandria Ocasio-Cortez's suggestion that wealthiest Americans ought to pay a marginal tax rate of as high as 70% "would be a terrible mistake." Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.