Greenspan Seeks a Stronger Attack on the Budget Deficit

WASHINGTON —  Federal Reserve Board Chairman Alan Greenspan called Tuesday for a stepped-up attack on the federal budget deficit, warning that the United States cannot count on foreign money indefinitely to finance its economy.

In a speech to the National Assn. of Realtors, Greenspan also stressed the importance of price stability for the long-term health of the U.S. economy. But he steered clear of commenting directly on recent signs of stronger inflation and slower economic growth, and gave little hint about the future direction of interest rates.

The Fed chairman told the Realtors that he is encouraged by the increased efforts of the last few years to cut the $200-billion annual federal budget deficit.

But he made it clear that more needed to be done, in comments that amounted to an implicit endorsement of Republican lawmakers’ efforts to eliminate the deficit by 2002.