BANKING

Greenspan Says Deficit Cuts Will Lower Interest Rates: The Federal Reserve Board chairman made his remarks at a conference in Jackson Hole, Wyo., on deficits and debt sponsored by the Kansas City Federal Reserve Bank. Alan Greenspan said the dollar could also benefit from an attack on government red ink because that would boost confidence in the United States’ ability to handle inflation long-term. Some economists at the conference had argued that the lower rates would lead to a weaker dollar by making it a less profitable currency for international investors to hold. But Greenspan said that would not necessarily be the case. Although lower rates might weaken dollar demand from short-term investors, credible budget cuts could boost demand from longer-term investors, he said.