Federal Reserve Chairman Alan Greenspan said on Wednesday the U.S. economy is growing at a reasonably good pace, but the country must tackle its budget deficits, primarily through spending restraint.

“Addressing the government’s own imbalances will require scrutiny of both spending and taxes,” Greenspan said in testimony prepared for delivery to the House of Representatives Budget Committee. “However, tax increases of sufficient dimension to deal with our looming fiscal problems arguably pose significant risks to economic growth and the revenue base.”

*For more on this story,

read the full Reuters article

.