- May 19, 2004
- Reaction score
- Plano, TX
- Political Leaning
- Libertarian - Right
WASHINGTON -- Federal Reserve Chairman Alan Greenspan on Wednesday urged a go-slow approach on personal Social Security accounts, saying that while he embraces the idea central to President Bush's proposed overhaul, he is concerned about stability in financial markets.
"If you are going to move to private accounts, which I approve of, you have to do it in a cautious, gradual way," Greenspan said in response to intense questioning from both Republicans and Democrats in an appearance before the Senate Banking Committee.
"I think it's a good thing to do over the longer run," he said because something must be done to fix the system.
Bush's proposal would allow workers under age 55 to divert a chunk of their Social Security taxes into voluntary, private investment accounts.
Greenspan repeated his call to Congress to take action to shore up the massive entitlement programs of Social Security and Medicare. Those programs face huge financial strains with the looming retirement of 78 million baby boomers in 2008. His remarks came as he delivered the Fed's twice a year economic outlook to Congress.