Bush wants Greenspan back in Fed

[Evanauto]

President Bush on Tuesday said he'll keep Federal Reserve Chairman Alan Greenspan at the helm of the central bank when his term is up next year, ending speculation a rift over the White House's tax proposal would send the Fed chief packing.

When asked during a meeting with reporters whether Greenspan had "done a good enough job" to stay on, Bush said: "Yes. I think Alan Greenspan should get another term."

Greenspan's term as chairman ends in June 2004. His term at the Federal Reserve Board ends Jan. 31, 2006, at which point, due to term limits, he would have to leave once the successor is announced.

Bush's comments came as the 77-year-old chairman underwent surgery for an enlarged prostate, which had tested negative for cancer. Fed spokeswoman Michelle Smith said the surgery was "routine and successful" and Greenspan was spending the night in the hospital to recuperate. He is expected to be back at work at the end of the week.

Some Fed-watchers had questioned if Bush would reappoint Greenspan, a Republican, to the chairmanship after the Fed chief in February publicly questioned the need for further tax cuts to boost the economy, a proposal that continues to be strongly pushed by administration officials.

Schwab Washington Research Group managing director Greg Valliere says Bush's comments were a smart political move given the strong support Greenspan has on Wall Street and on Main Street.

He also noted Bush is trying to avoid mistakes made by his father, whose administration clashed with Greenspan.

"There are many things this President Bush is going to avoid, and this is high up on the list," Valliere says.

Greenspan in February told members of Congress the economy was likely being held back by prewar uncertainty about Iraq and once that cloud cleared, the economy would likely pick up. He also warned against large budget deficits.

The statement allegedly angered some in the White House and led some private economists to question whether Greenspan would stay on past June 2004.

It would be nice to have Greenspan back, but the torch must be passed.

[NEMESiSZ]

It's so funny when people here act as though they understand economics, I can't WAIT for the replies to this...

[jamminwitheto]

The arrticle was taken off of cnn
besides why the hell pass the torch...
He Did good during His dads reign, Bills reign, and has done good this ones reign. WHY DID YOU COPY AND PASTE DO YOU OWN STOCK ARE YOU MAD...?
just asking

[karasz]

wow the son of a president that lost cuz the economy sucked is going to keep an economist considered a big reason to why the economy was riding high a couple years ago...

amazing...

did anyone actually doubt bush would pass on greenspan for fed chairman?

cuz im sure if bush said 'im going to appoint someone else' the markets wouldve fell...

really no surprise at all

[FUNKbrs]

hey, maybe bush isnt retarded after all. He obviously sees the need to tie himself to people with a history of success. If only he could dig up Nixon......

[NJDeadzone]

NemesisZ, do you feel a tug on the fishing line yet?

[Evanauto]

At 4/23/03 01:25 AM, FUNKbrs wrote: hey, maybe bush isnt retarded after all. He obviously sees the need to tie himself to people with a history of success. If only he could dig up Nixon......

Nixon? why Nixon?