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.

Rep. Barney Frank (D-Mass.) talks about Greenspan's testimony on the state of the U.S. economy. Play video (Real or Windows Media)

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."