Federal Reserve Chairman Alan Greenspan warned on Thursday that unless lawmakers come to grips with spiraling U.S. deficits, the economy was at risk of stagnation “or worse.”
“Under existing tax rates and reasonable assumptions about other spending … projections make clear that the federal budget is on an unsustainable path, in which large deficits result in rising interest rates and ever-growing interest payments that augment deficits in future years,” Reuters reported Greenspan saying in testimony prepared for a Senate Budget Committee hearing.
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