Mr. Greenspan has indicated that action to check inflation would require action to strengthen the dollar.

Checking inflation, he said, would be "one of my primary goals."

The other main aims of the budget were to check inflation and to ensure the minimum required level of consumer goods.

They also see the Federal Reserve determined to check inflation but in no hurry to ease short-term interest rates.

"In the next few months, we expect to see restraints on income, but without this it would be impossible to check inflation quickly," he said.

The Fed would be forced to raise interest rates in order to check inflation.

However, the Fed can also check inflation in an election year without imperiling the economy so quickly -by letting the dollar rise.

Moreover, these workers may be thrown out of their jobs in order to supposedly check inflation.

Together, the reports would appear to ease the pressure on the Federal Reserve to raise interest rates this summer to check inflation.

Policies will also be developed to check inflation, he said.