• This is a rush transcript from "Your World with Neil Cavuto," September 18, 2007. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: We are breaking from our usual format to devote a lot of time to this next guest.

    The Federal Reserve hinting its move today was as much meant to calm markets as us. But if even the title of my guest's book is right, a mere cut in rates won't do that in and of itself.

    The book is "The Age of Turbulence." That age is now. And that author is Alan Greenspan. And that book of his is number one on all book lists right now, handily besting a fellow you might have heard mentioned once or twice on this network, O.J. Simpson.

    Dr. Greenspan, good to have you.

    ALAN GREENSPAN, FORMER FEDERAL RESERVE CHAIRMAN: Pleasure to be here.

    Video: Former Federal Reserve Chairman Alan Greenspan discusses Fed's interest rate decision

    Video: Greenspan defends rate cuts from critics

    Video: Greenspan assesses President Bush's handling of economy

    Video: Greenspan reflects on professional legacy

    CAVUTO: You're ahead of O.J. Congratulations.

    GREENSPAN: I find that very unusual.

    (LAUGHTER)

    GREENSPAN: But I appreciate it.

    CAVUTO: All right, let's talk. I know you don't want to necessarily comment on what the Fed did today. That is your purview and right.

    Nevertheless, by cutting rates a half-a-point, the signal the markets got is that, hey, those guys maybe see some bad stuff going on, and that they're doing something fast.

    What do you think?

    GREENSPAN: I think everybody makes interpretations of what everyone thinks by looking at what the prices did. I used to do that. I have ceased doing it, because I don't have a clue, because, unless you go out there and get everybody's vote, so to speak, as to why they did or did not move in a market, you are hypothesizing.

    And there are actually lots of other alternative explanations. But everyone — I guess it is the nature of the beast — has an opinion of what, you know, several million people's motives were in making a certain move.

    CAVUTO: Yes. But, if we were not going anywhere, we're flat, right, and then we're all of a sudden up 330-some-odd points, the markets clearly liked this, right?

    (CROSSTALK)

    GREENSPAN: Something happened.

    CAVUTO: Right. Right.

    GREENSPAN: I vouch for that.

    CAVUTO: Now, the markets seem to have been sensing that the Federal Reserve risked falling finding behind the proverbial curve, missing what was a slowdown, if not worse.

    Do you think, by cutting interest rates, we have averted that?

    GREENSPAN: Neil, that is one of the questions I can't answer. I have chosen not to speak about monetary policy or its very specific aspects for short — short run.

    As you know, of course, in the book...

    CAVUTO: Right.

    GREENSPAN: ... I talk about the longer run and the problems that will confront the Federal Reserve, and, indeed, all central banks.

    But people at the Federal Reserve Board are terrific. It's a wonderful organization. They are very smart. Let's just let them do what they think is right, because I know how they go about it. And leave them do the work.

    CAVUTO: OK. Do you think...

    GREENSPAN: I don't — I don't...

    (CROSSTALK)

    CAVUTO: I understand. I don't want you...

    GREENSPAN: People — nobody needs to comment about it...

    CAVUTO: I will get you to trash them later.

    GREENSPAN: ... especially...

    CAVUTO: I will get you to trash them later.

    GREENSPAN: OK.