Bexarotene and GM-CSF in Treating Patients With Myelodysplastic Syndrome or Acute Myeloid Leukemia

DISEASE CHARACTERISTICS: * Diagnosis (confirmed by bone marrow aspirate and/or biopsy) of 1 of the following: * Myelodysplastic syndromes of 1 of the following cell types: * Refractory anemia (RA) with ringed sideroblasts * Refractory cytopenia with multilineage dysplasia (RCMD) * RCMD and ringed sideroblasts * RA with excess blasts-1 * RA with excess blasts-2 * Myelodysplastic syndromes, unclassified * Chronic myelomonocytic leukemia * Relapsed or refractory acute myeloid leukemia (AML), meeting 1 of the following criteria: * Recurrent genetic abnormalities (11q23 \[MLL\] abnormalities) * Multilineage dysplasia * Therapy-related AML * Not otherwise categorized, including any of the following: * M0 minimally differentiated * M1 without maturation * M2 with maturation * M4 myelomonocytic leukemia * M5 monoblastic/monocytic leukemia * M6 erythroid leukemia * M7 megakaryoblastic leukemia * Newly diagnosed untreated AML allowed provided patient does not qualify for or refused potentially curative intensive chemotherapeutic regimens * No RA with 5q-syndrome * No peripheral leukemia with blast count \> 30,000/mm³ (uncontrolled with hydroxyurea) * Relatively stable bone marrow function for \> 7 days (i.e., no WBC doubling to \> 10,000/mm\^3) * No acute promyelocytic leukemia * No clinical symptoms of active CNS disease (if CNS disease is suspected, patient must have lumbar puncture with negative cytology) PATIENT CHARACTERISTICS: * ECOG performance status 0-2 * Creatinine ≤ 2.0 mg/dL * Bilirubin ≤ 1.6 mg/dL (unless secondary to hemolysis) * AST and ALT ≤ 4 times upper limit of normal (unless disease related) * Hemoglobin ≥ 8 g/dL (transfusions allowed) * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective barrier contraception * No untreated positive blood cultures or progressive infection as assessed by radiographic studies * No history of intolerance to sargramostim (GM-CSF) PRIOR CONCURRENT THERAPY: * Recovered from prior therapy * At least 2 weeks since prior treatment for myeloid disorder, including any of the following: * Chemotherapy * Hematopoietic growth factors * Biologic therapy (e.g., monoclonal antibodies) * Hydroxyurea for patients with WBC \> 10,000/mm\^3 allowed * No concurrent vitamin A supplementation * No concurrent gemfibrozil