WASHINGTON-Federal Reserve Chairman Alan Greenspan, expressing new worries about the economy, said Wednesday the slowdown “has yet to run its full course” and signaled the central bank is ready to cut interest rates again to rev up growth.
Greenspan delivered his latest assessment to the House Financial Services Committee as President Bush tried to rally the nation behind his plan for major tax cuts and for a budget blueprint that he says will shrink government debt while protecting important programs.
At a factory in Beaver, Pa., Bush said Greenspan’s downbeat remarks were “all the more reason to accelerate the tax cut … as soon as possible.” Bush wants to cut individual tax rates retroactive to Jan. 1.
While repeating his support for tax cuts-which first got his blessing to on Jan. 25-Greenspan refrained like before from endorsing a specific plan.
