DARYN KAGAN, CNN ANCHOR: It's another day, another Capitol Hill appearance by Federal Reserve Chairman Alan Greenspan. Today -- this was his second this week -- he was eagerly watched by Wall Street. Joining us now with details on what he had to say, our Jeanne Meserve, who's standing by in Washington. Jeanne, hello.</s>JEANNE MESERVE, CNN CORRESPONDENT: Hi, Daryn. And eagerly watched by the White House as well; the timing for them couldn't be better. President Bush's tax plan is on the Hill, the House Ways and Means Committee yesterday passed a significant piece of that -- the reduction in income tax rates. And today Fed Chairman Alan Greenspan said what he has before, that the surplus projected for the next 10 years -- $5.6 trillion -- is so very large that there can be debt reduction and also tax cuts. However, he did have some cautionary words; for one thing, on spending. He said Congress must restrain its spending or he said we could resurrect the deficits of the past and the fiscal imbalances that followed in their wake. And he also advised against investing some of that federal surplus in the private sector, specifically in stocks and corporate debt.</s>ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: Over time, having the federal government hold significant amounts of private assets, in my judgment, would risk suboptimal performance by our capital markets, diminished economic efficiency and lower overall standards of living than would be achieved otherwise.</s>MESERVE: The federal reserve chairman did not talk, in his testimony today, about the state of the economy. But as Daryn mentioned he did, earlier this week, talk about it, and said the slowdown which began in the second half of last year has not yet ended. An indication, analysts say, that there will be further rates cuts, but they may not hit until the Fed next meets. That will be on the 20th of March. Back to you.</s>KAGAN: Jeanne, thank you so much.
Greenspan Tacitly Endorses Tax Cuts