FED says current account deficit may decline

FED says current account deficit may decline

The dollar's weakening and fiscal restraint may ease the US current account in the coming months, said Federal Reserve Chairman Alan Greenspan. Washington reportedly wants to reduce the federal budget deficit, which in turn means a decline in US overseas borrowing. The current account deficit widened $17.5 billion during the second and third quarters of 2004 to a record $164.7 billion. Since March, the dollar has fallen 4.25% against other major currencies.