Gov't Must Watch Savings Rate -Greenspan

WASHINGTON (Reuters) - U.S. Federal Reserve Chairman Alan Greenspan said on Friday that it was important not to cut national savings when considering the use of the projected budget surplus, and said mandated individual savings accounts could help.

``One of the things you want to be careful about is not to reduce national savings when you begin to ... try to bring the unified surplus down to zero,'' Greenspan told the House of Representatives Budget Committee.

Greenspan said one potential solution was to have mandated individual savings accounts, taking the money from government accounts, reducing the surplus, thereby maintaining savings and removing the problem of the federal government investing in financial markets.