Federal Reserve Chairman Alan Greenspan testifed before the House Budget Committe today that rising federal deficits coupled with an aging population would leave "no choice but to make significant structural adjustments in the major retirement programs". He indicated a clear preference for a reduction of benefits over a tax expansion, saying "tax rate increases of sufficient dimension to deal with our looming fiscal problems arguably pose significant risks to economic growth and the revenue base."

Greenspan's full testimony is located here.