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Federal Reserve Chairman Alan Greenspan told the Senate Banking Committee today that U.S. economic growth is slowing, which may prompt the Fed to cut interest rates. Greenspan cited rising unemployment, a drop in retail sales and slackening home construction as evidence that the Fed's much-criticized interest rate increases are whittling the 4 percent growth rate to an anticipated 2 to 3 percent. Seven Fed rate increases during the past year, boosting the prime rate from 6 to 9 percent, upset lawmakers who are concerned because it is harder for businesses and individuals to borrow money. Greenspan insisted the rate increases were needed to avert runaway inflation and hinted the Fed may cut back the rates if the economy continues to slow down. TIME economics reporter Bernard Baumohl says that is good news for the Clinton Administration, which is hoping for a strong economy as the 1996 re-election campaign gets underway. But he warned the economy could fall into a recession if the slowdown goes on too long.