WASHINGTON, Aug 10: Widely considered to be at least the second most powerful man in the United States, Alan Greenspan celebrates Sunday 15 years at the helm of the Federal Reserve.
At 76, Greenspan shows no signs of fatigue and his current term runs to 2004.
But rumours abound that may want to end his term early to avoid compounding the uncertainties of a presidential election that will be unfolding at the time.
Speculation over his future replacement is a favourite sport.
Greenspan would be leaving at the pinnacle of his career.
He is credited with saving the world economy by reacting swiftly to the 1987 stock market crash and to the financial crisis that shook the world in 1997 and 1998, not to mention an unprecedented series of interest rate cuts after the September 11 attacks.
A few critics, however, accuse Greenspan of compounding the US economic woes before the attacks by refusing to drop interest rates more sharply.
Americans are not alone in showing their admiration.
Britain announced this week that Queen Elizabeth II will award him with an honorary knighthood for helping to steady the global economy.
Greenspan will not be able to call himself “Sir Alan” because he is an American, but he may place the letters KBE — for Knight Commander of the Order of the British Empire — after his name.
The award is in recognition of his outstanding contribution to global economic stability and the benefit that the UK has received from the wisdom and skill with which he has led the US Federal Reserve Board, the British Treasury said.
Greenspan, whose gangly profile, balding head and large glasses are now instantly recognisable, has a Sphinx-like reputation. One story has it that he had to repeat his marriage proposal to his second wife. Andrea Mitchell, an NBC journalist, did not know what he was talking about.
Conscious of the weight his words carry, Greenspan’s speeches are carefully crafted. His famous comment about the “irrational exuberance” of the markets in December 1996 was couched within his reflection about a decade-long contraction ... in Japan.
Above all else, Greenspan has shown himself to be pragmatic. In the face of current economic uncertainties, he has assured markets he will refrain from raising interest rates until the world’s biggest economy is out of its convalescence.
Born three years before the 1929 stock market crash, Greenspan was brought up by his mother in a small New York apartment.
His modest upbringing and unusual career — before beginning his university studies he crossed the country in an orchestra — make him the incarnation of the American dream.
His economic studies, powerful mentors and sharp intelligence set up him up for a career as a consultant before becoming advisor to presidents Richard Nixon and Gerald Ford. He was named chairman of the Federal Reserve by Ronald Reagan.
Greenspan’s stature makes the search for a successor more difficult, but he also had to fill big shoes, those of his predecessor Paul Volcker.
None of the names now doing the rounds has unanimous support.
White House chief economist Lawrence Lindsey has the ability and the Federal Reserve experience but his name is linked to Enron, the failed energy giant.
Treasury Undersecretary John Taylor has an impeccable reputation but is considered too academic.
And Robert Rubin, former Treasury Secretary under Bill Clinton, is a Democrat.—AFP
