WASHINGTON -- High U.S. debt levels are choking the economy and making it more difficult for the Federal Reserve to hep by lowering interest rates, Fed Chairman Alan Greenspan said Friday.

"A heavy overhang of debt, an accumulation of bad loans, and doubts about th future have produced an unusual degree of caution among many key lenders, as well as on the part of businesses and consumers," Mr. Greenspan said in a speech to the Securities Industry Association in Boca Raton, Fla.

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