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Greenspan to make new deficit warning
Congressman says Fed chair's remarks warn capital needed by businesses will be limited by deficit.
July 15, 2003: 10:00 AM EDT

NEW YORK (CNN/Money) - Federal Reserve Chairman Alan Greenspan will warn Congress Tuesday that federal deficits could hurt the raising of private capital needed by businesses, according a Democratic congressman who has seen the Fed chairman's prepared testimony.

Rep. Barney Frank (D-Mass.) told CNNfn Tuesday that Greenspan's comments to the House Financial Services Committee, set for 10 a.m. ET, will include a warning about the drop in the federal net savings rate associated with the larger government deficits.

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Rep. Barney Frank (D-Mass.) talks about Greenspan's testimony on the state of the U.S. economy.

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Frank quoted Greenspan's comments as warning, "If not reversed over the longer haul, such low levels of national savings could eventually impinge on the formation of private capital that contributed to the improved productivity performance of the past half decade."

Frank, who fought the Bush administration tax cut plans, said the Greenspan statement is "the starkest statement I've seen about the dangers of current deficits being put forward."  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.