Dollar Slumps as Euro Moves to Fresh Four-Year High

Having tried for several days to shatter long-standing resistance above $1.1084, the euro decisively made the break Wednesday, and was trading above $1.11 in New York for the first time in over four years.

The break -- which happened during Asian trading -- came amid heavy demand for the euro, coupled with continuing concerns about the U.S. economy that conspired to drive the dollar down.
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  thanks to The Agonist

Greenspan Says Tax Cut Is Not Needed for Growth

Alan Greenspan, the chairman of the Federal Reserve Board, told Congress today that the economy was poised to grow without further large tax cuts, and that budget deficits resulting from lower taxes without offsetting reductions in spending could be damaging to the economy. Opponents of the large cut favored by President Bush took Mr. Greenspan's testimony as support for their position.

Mr. Greenspan's statements to the House Financial Services Committee were made as new Treasury data showed that tax revenues have arrived at a much slower pace than expected this spring. As a consequence of the revenue shortfall and increased spending enacted this month, government and private analysts said today, the budget deficit this fiscal year will be at least $80 billion higher than the Congressional Budget Office projected last month.

With a large deficit, Mr. Greenspan said, "you will be significantly undercutting the benefits that would be achieved from the tax cuts."
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