Mr Alan Greenspan (77) said yesterday he would accept an offer of a fifth term as Federal Reserve chairman if nominated by President George Bush and confirmed by Congress.
Mr Bush surprised Wall Street on Tuesday when he told reporters that Mr Greenspan "should get another term" as Fed chairman. His four-year term does not expire until June 2004 and a decision had not been expected so soon. "The President and I have not discussed this but I greatly appreciate his confidence," Mr Greenspan said in a statement.
"I have been privileged to be appointed by five presidents to various positions. If President Bush nominates me, and the Senate confirms his choice, I would have every intention of serving."
The announcement puts to rest speculation about Mr Greenspan's future which has been rife since February when the Fed chairman questioned the need for Mr Bush's $726 billion tax cut plan. By keeping him in place, the Bush administration is seeking to reassure investors at a time when the economy is struggling to recover from recession, analysts said. The markets have reacted favourably to the news.
The tax cut, the centrepiece of Mr Bush's re-elections platform, is in trouble in Congress, partly because of Mr Greenspan's refusal to embrace it. Mr Greenspan has been at the head of the US central bank since 1987.
