Donald Trump's economic policies risk plunging America into a period of 1970s-style stagflation with low growth and "out of control" inflation, the former chairman of the US Federal Reserve has warned.

Alan Greenspan, who led the US central bank between 1987 and 2006, said America's huge debt pile meant policymakers "cannot afford" to embark on an infrastructure spending spree or major fiscal loosening as he signalled that the policies put forward by the US president would cause the world's biggest economy to overheat.

Mr Greenspan also expressed "grave concerns" about the future of the eurozone, where countries in northern Europe such as Germany have "in effect been funding the deficits of the South".