Today on Your World, Neil Cavuto had the first interview with former Federal Reserve Chairman after the Federal Reserve met to cut interest rates by half a percentage point. FNC’s Bret Baier also had an interview with President Bush, which will run at a later date. However, a clip from the Bush interview was played and Greenspan responded to that. Transcript highlights follow…

President Bush on FOX News Regarding Alan Greenspan’s Recent Assertions:

Bush: “I would say that the record, our fiscal record is admirable and good. After all, the deficit percentage to GDP is low, relative to the 30-year average. It’s about 1.5 percent of GDP, which is — which is good. And we submitted a budget that shows that we can get it balanced. I would also argue that cutting taxes made a significant difference, not only in dealing with the recession and the attack in our country, but it made a significant difference in dealing with the deficit, because a growing economy yielded more tax revenues, which allowed us to shrink the deficit. And so I would respectfully disagree with the characterizations of Chairman Greenspan.

Greenspan’s response to the above Bush statement:

Greenspan: “The issue is really not the short term. The president’s numbers are correct. Indeed, the deficit this year is coming in well under expectations. The concern that I’ve had is what the potential for the budget deficit is when the Baby Boomers retire. Any evaluation of the period that starts in about 2010-11 forward, especially when you look at Medicare, creates a huge fiscal problem. We have never had a major increase in retirees like we’re about to run into.

My basic problem is with the Republican Congress. My problem with the president is that he did not use the veto sufficiently. It was not he who essentially created the agriculture policy or, I should say, the agricultural program or the highway bill. He would have — he was coming in much lower. But, instead of vetoing a lot of that stuff, it came through.