US slashes growth forecast

US slashes growth forecast

Mr Greenspan appeared before a congressional panel

The sluggish US economy is taking longer to pick up than anticipated, according to the latest figures and comments from the Federal Reserve chairman Alan Greenspan.

Mr Greenspan, in his twice-yearly testimony to Congress, said the central bank was cutting its forecast for US economic growth this year by three quarters of a percentage point to 2.5-2.75%.

The downgrade came on the day the Bush administration predicted that the federal deficit would surge to a record $455bn this year thanks to tax cuts, economic weakness, and the cost of war in Iraq and the fight against terrorism.


http://news.bbc.co.uk/2/hi/business/3068369.stm

>>the Bush administration predicted that the federal deficit would surge to a record $455bn

So much for the party of fiscal conservatives...smaller government, balanced budget...screw all that....

Spend, spend, spend, cut taxes, cut taxes cut taxes...quite a legacy to leave to the children and grandchildren and future generations.

But then Bush isn't head of the PRC! :0)