Anastrozole With or Without Gefitinib in Treating Postmenopausal Women With Metastatic or Locally Recurrent Breast Cancer

DISEASE CHARACTERISTICS: * Histologically confirmed breast cancer * Radiologically or clinically evident metastatic or locally recurrent disease * Locally advanced disease in elderly patients * Bone metastases only allowed * Failed prior tamoxifen therapy * No rapidly progressive visceral metastases * No uncontrolled CNS metastases * Hormone receptor status: * Estrogen receptor and/or progesterone receptor positive PATIENT CHARACTERISTICS: Age * Postmenopausal Sex * Female Menopausal status * Postmenopausal, defined by any of the following: * Natural menopause with last menses more than 1 year ago * Radiotherapy-induced oophorectomy with last menses more than 1 year ago * Chemotherapy-induced menopause with last menses more than 1 year ago AND serum follicle-stimulating hormone and luteinizing hormone and plasma estradiol levels clearly in the postmenopausal range * Surgical castration Performance status * ECOG 0-2 Life expectancy * Not specified Hematopoietic * Not specified Hepatic * Bilirubin no greater than 1.5 times upper limit of normal (ULN) * Transaminases no greater than 2.5 times ULN * No unstable or uncompensated hepatic disease Renal * No unstable or uncompensated renal disease Cardiovascular * No unstable or uncompensated cardiac disease Pulmonary * No unstable or uncompensated pulmonary disease * No clinically active interstitial lung disease * Asymptomatic chronic stable radiographic changes are allowed Other * No severe or uncontrolled systemic disease * No other malignancy within the past 5 years except adequately treated carcinoma in situ of the cervix, nonmelanoma skin cancer, or contralateral breast cancer * No psychological, familial, sociological or geographical condition that would preclude study compliance and follow-up * No grade 2 or greater unresolved chronic toxicity from prior anticancer therapy * No unresolved ocular inflammation or infection * No known hypersensitivity to anastrozole or gefitinib or any of their excipients PRIOR CONCURRENT THERAPY: Biologic therapy * No prior trastuzumab (Herceptin) * No concurrent biologic therapy Chemotherapy * No more than 1 line of prior chemotherapy in the adjuvant or metastatic setting * No concurrent chemotherapy Endocrine therapy * At least 2 years since prior aromatase inhibitors (e.g., anastrozole, letrozole, or exemestane) in the adjuvant setting * Prior tamoxifen or fulvestrant in the adjuvant and/or metastatic setting allowed * No prior aromatase inhibitors for metastatic disease * No other concurrent hormonal therapy Radiotherapy * No concurrent radiotherapy to any metastatic site Surgery * No surgery during and within 4 days after the last dose of gefitinib Other * At least 30 days since prior investigational drugs * No prior anti-epidermal growth factor therapy * No prior anti-vascular endothelial growth factor therapy (i.e., tyrosine kinase inhibitor receptor) * No concurrent administration of any of the following drugs: * Phenytoin * Carbamazepine * Rifampin * Phenobarbital * Hypericum perforatum (St John's Wort) * No other concurrent investigational drugs or treatment * No other concurrent cancer treatment * No concurrent systemic retinoids * Concurrent bisphosphonate therapy for the treatment and prevention of bony metastases is allowed provided therapy was initiated prior to study entry * Bisphosphonates may be initiated during study only for the treatment of hypercalcemia