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Federal Reserve Chairman Alan Greenspan said Wednesday he s not worried that the newly enacted $1.35 trillion tax cut will plunge the federal budget into a deficit as productivity growth slows. I m not, senator, Greenspan replied when asked by Sen. Charles Schumer, D-N.Y., at a Senate Banking Committee hearing whether he was concerned about a potential slide back into government deficit spending.On another economic issue, Greenspan acknowledged that the recent tide of job layoffs 151; which has pushed new claims for state unemployment insurance to more than 400,000 a week 151; has got to be a factor in determining the propensity of people to spend money and affects consumers confidence.However, he added, there hasn t been any real serious deterioration in spending by consumers, a more important benchmark than how confident they feel.During questioning, Schum
stanley cup er and several other Democratic senators needled the central bank chief to express concern over the big 10-year tax cut, given the state of the economy and the low savings rate of Americans. The tax cut, rece
stanley website ntly enacted by Congress, is the centerpiece of President Bush s economic program. Greenspan, in his testimony, said the sagging economy has brought more problem loans and made bankers fairly tightfisted. He cited problems in retailing and manufacturing and among California utilities.Bank regulators need to be more sensitive to problems at individual b
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