WASHINGTON — Former Federal Reserve Chairman Alan Greenspan yesterday endorsed a proposed bipartisan commission to help make the tough calls needed to get the record US debt under control.
Testifying before the Senate Homeland Security Committee, Greenspan warned that the United States must quickly begin to erase red ink to avert possible disaster.
“Our nation has never before had to confront so formidable a fiscal crisis as is now visible just over the horizon,” said Greenspan, who headed the central bank from 1987 to 2006.
Greenspan backed a proposal by Democratic Sen. Kent Conrad and Republican Sen. Judd Gregg for an 18-member task force on deficit reduction.
The commission would recommend possible spending cuts or tax hikes for the Senate and House of Representatives to consider.
A 60 percent super majority would be needed in each chamber for approval. But lawmakers could not change the recommendations.
The task force “is an excellent idea” that is “going in the right direction,” Greenspan said.