Much of the time, lower interest rates are better for the economy than lower taxes.

I am pleased to welcome Chairman Greenspan back before our Committee to testify on the Federal Reserve's Semi-Annual Monetary Policy Report to Congress.

I find this troubling. I guess I find any chart that all of a sudden seems to leap out in some different direction from what we have generally been experiencing a matter of concern.

This deficit requires us Americans to borrow about $2 billion from foreigners every working day. No expert I know believes that this is sustainable.

I have a lot of difficulty seeing how this is going to change very much.

I think the high rate at one point in the Nixon Administration is we were spending something close to 6 percent of the Federal budget on secondary and elementary education in this country, the Federal Government was.

We can come down to where we allocate resources and how we make choices between the issue of tax cuts for the top 1 percent of income earners versus investing in a No Child Left Behind bill.

What are the implications? It worries me deeply. I think it does you as well.

Today, I think the figure is less than 2 percent.

I think the high rate at one point in the Nixon Administration is we were spending something close to 6 percent of the Federal budget on secondary and elementary education in this country, the Federal Government was.

I think we should look at our choices. We can come down to where we allocate resources and how we make choices between the issue of tax cuts for the top 1 percent of income earners versus investing in a No Child Left Behind bill.

I believe that the U.S. economy is on the right track. The economy is growing, payroll employment is up, and new and existing home sales set new record highs in May. This is good news.

Putting that together, have we seen the wealthy, who were given huge tax cuts over the past 3 years, turn around and spend their tax cuts on these luxury items, while average workers of course have seen their wages stagnate?

sometimes maybe for the stock market and maybe for the economy, lower interest rates are better than lower taxes.

the recovery is sustainable.

The thing you are here to report on and the thing you are in charge of, monetary policy, I think you are doing a superb job.

sometimes maybe for the stock market and maybe for the economy, lower interest rates are better than lower taxes.

Thank you, Mr. Chairman. And thank you, Chairman Greenspan, as well.