IRRITATED American officials yesterday sought to play down claims that Alan Greenspan had said Washington had “lost control” of its budget deficit.

Thierry Breton, France’s Finance Minister, speaking to reporters in Washington, made the claim after a closed-door meeting with Mr Greenspan, the Federal Reserve Chairman, and John Snow, the US Treasury Secretary.

“ ‘We have lost control’, that was his expression,” M Breton said as he outlined the Fed Chairman’s private comments.

A senior US official suggested the French minister must have misunderstood Mr Greenspan’s remarks. “Things can get lost in translation,” the official said.

The US Treasury also rejected any suggestion that the deficit was out of control. “This administration is absolutely committed to the President’s goal of halving the deficit as a percentage of GDP by 2009 and we have every expectation of meeting that goal,” a spokesman said.

The shortfall of tax revenues over public expenditure is expected to be about $400 billion (£215 billion) this year, boosted by the unexpected cost of rebuilding after hurricanes Katrina and Rita.

The Federal Reserve refused to comment on M Breton’s reports of its Chairman’s views.

Earlier, the French minister said that both he and Mr Greenspan had expressed disappointment “that the management of debt is not a political priority today”. “The United States has lost control of its budget at a time when racking up deficits has been authorised without any control (from the US Congress),” M Breton said.

The controversy came as ministers from the Group of Seven leading economies said reductions in the US budget deficit were a key part of easing the global economic imbalances that could jeopardise world growth.

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