Bush Renominates Greenspan As Fed Chairman

By Agence France-Presse U.S. President George W. Bush on May 18 renominated Alan Greenspan as Federal Reserve chairman. "Alan Greenspan has done a superb job as chairman of the board of governors of the Federal Reserve system, and I have great continuing confidence in his economic stewardship," Bush said in a statement." The reappointment had been widely expected ahead of the expiry of Greenspan's current four-year term on June 20. If he accepts, Greenspan must be confirmed by the Senate. Greenspan accepted his nomination by President Bush. "I am honored to be nominated by President Bush and, if confirmed by the Senate, to continue my service as chairman of the Board of Governors of the Federal Reserve System," he said in a one-sentence statement. The decision keeps the 78-year-old central bank chief in charge of monetary policy at a delicate time, with interest rates apparently set to rise before presidential elections due Nov. 2. Financial markets, which hang on every nuance of Greenspan's words, are likely to be soothed by the news. Greenspan's 14-year appointment as a member of the Federal Reserve Board runs through Jan. 31, 2006, and it is unclear whether that term could be extended to allow him to complete another four years at the top. Copyright Agence France-Presse, 2004