A U.S. budget agreement that includes debt reduction needs to be reached to revive economic growth, former Federal Reserve Chairman Alan Greenspan said.
“Unless we remove deep-seated uncertainties, the economy is not going anywhere,” Greenspan said today during a “Bloomberg Surveillance” television interview with Sara Eisen in Washington. The economy will “stay this way unless we remove a lot of the uncertainty.”
Greenspan said he supports the $2.5 trillion package of spending cuts and tax increases proposed by Erskine Bowles and Alan Simpson. An update of the plan, to be released today in Washington, includes $740 billion in increased revenue over the next decade that Republicans have deemed unacceptable and a higher eligibility age for Medicare that President Barack Obama has rejected.
“The most fundamental issue that needs to be addressed is getting the budget under control,” Greenspan said.
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