The dilemma that Mr. Greenspan encounters revolves around the tough decision of whether to increase interest rates or not. In this context, a dilemma isn't simply a challenging situation; it specifically refers to a scenario where one is faced with two unsatisfactory choices. This definition emphasizes the complexity and weight of his decision, as both options may lead to unfavorable outcomes for the economy.

Fowler's perspective on dilemmas allows for situations with multiple alternatives, yet they must remain clearly defined, along with their undesirable consequences. This implies that Mr. Greenspan's decision-making involves navigating through precarious economic conditions where the implications of his choices are potentially damaging, highlighting the critical nature of his role in managing economic stability.