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Fourth term for Greenspan
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January 4, 2000: 2:38 p.m. ET
Clinton renominates Federal Reserve Board chief for another four-year stint
By Staff Writer M. Corey Goldman
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NEW YORK (CNNfn) - In a widely expected move, President Clinton tapped Federal Reserve Chairman Alan Greenspan for another four-year term Tuesday, paving the way for the Fed chief to preside over the longest period of expansion in the country’s history.
In a subdued White House press conference, a soft-spoken Greenspan graciously accepted the chance to lead the Federal Reserve Board for another four-year term, beginning June 2000.
"Clearly wise leadership from the Fed has played a very large role in our strong economy,” Clinton told reporters. "This chairman’s leadership has been good, not just for the American economy and the mavens of finance on Wall Street. It has been good for ordinary Americans.”
Wall Street’s mavens registered little reaction to the news, mainly because most expected Greenspan, 73, to continue on in his job of leading the U.S. economy. Rather, most market participants were focused on the Fed’s next meeting on interest rate policy, which takes place on Feb .1-2. Greenspan's current four-year term as Fed chairman expires June 20.
"It’s not one of those things that people ever really questioned,” said Steve Ricchiuto, chief U.S. economist with ABN Amro in New York. "The chairman had made it quite clear that, if given the opportunity, he would continue to serve.”
Man of the year
Greenspan, named Man of the Year by the Arts & Entertainment Channel's "Biography” show, has been praised by for steering the U.S. economy toward the longest peacetime expansion in history. Unemployment is at a 30-year low, consumer confidence is at a 30-year high and inflation remains in check as the nation enters its 107th consecutive month of economic progress, the longest period of growth since the 1960s.
Praise for Greenspan stems partly from his prominent role in steering the U.S. and global economies away from several near-recessions, the savings and loan crisis of the late-1980s, the overheating U.S. economy of 1994, the Asian financial crisis in 1997, and the Russian debt crisis and Long-Term Capital Management bailout in late 1998.
Clinton and Greenspan at the White House
It also stems from the growing prominence of financial markets and investing that has reached an unprecedented number of Americans in the 1990s. Unlike his predecessors, Greenspan has become a household name since his appointment by former President Ronald Reagan in 1987, the year of the Black Monday market crash.
Despite being a Republican, Greenspan has worked closely for seven years with Clinton, a Democrat. In his comments, the Fed chairman praised the economic team assembled by Clinton, including current Treasury Secretary Lawrence Summers and former secretaries Lloyd Bentsen and Robert Rubin.
Greenspan is scheduled to sit at the helm of the world’s most influential central bank until June 2005. He currently ranks No. 3 in tenure as Fed chairman, behind William McChesney Martin who served from April 1951 to early 1970 and Mariner Eccles from November 1934 to early 1948. If his reappointment is approved by the Senate, Greenspan could become the second-longest serving chairman.
Praise from Lott, Gore
Senate Majority Leader Trent Lott, R-Miss., praised Greenspan and suggested he would have little trouble being confirmed by the Senate.
"I welcome the appointment of Greenspan to another term," Lott said in a written statement, "He has served with a steady hand as the spirit and ingenuity of the American people have brought forth unprecedented economic prosperity.”
One of those seeking to succeed Clinton in the White House -- Vice President Al Gore -- expressed his support for the reappointment of Greenspan, with whom he would work closely if he succeeds in winning the November election.
"I am confident that Chairman Greenspan's technical experience, common sense, and commitment to fiscal discipline will continue to expand our nation's prosperity for all Americans," Gore said in a statement.
Music to Wall Street’s ears
Greenspan, a New York City native who once toured with a band as a saxophonist and clarinet player, graduated from New York University’s School of Commerce with an economics degree in 1948.
He earned his Masters in 1950, but left before finishing his doctorate -- he ultimately received his Ph.D. in 1977 -- to form an economic consulting firm named Townsend-Greenspan with the bond trader William Townsend. Townsend served as president of the company until his death in 1958, when Greenspan became its president and principal owner.
Click here for CNNfn’s Special Report on the Fed
His first foray into politics came in 1967 when he served as director of domestic policy for former President Richard Nixon. In 1974, Greenspan accepted a position as Chairman of the Council of Economic Advisors -- an agency that became synonymous with combating excessive inflation.
Greenspan remained out of politics until 1981, when he served as Chairman of the National Commission on Social Security Reform -- an organization put together by former President Reagan’s advisers to save the social security system from bankruptcy. Greenspan accepted Reagan’s nomination as Fed chairman following Paul Volcker’s abrupt resignation in 1987.
Alan.com
Clinton praised Greenspan for allowing the so-called "new era” economy of high technology and productivity to thrive, ushering in a level of prosperity not seen since the post Second World War era of the 1950s and 1960s.
Greenspan is "one of the first in his profession to realize the power and impact of new technologies on the new economy,” Clinton said.
"In fact, his devotion to new technologies has been so significant, I’ve been thinking of taking Alan.com public - then we could pay the debt off even before 2015,” the President quipped.
(Click here for 1.6mb Quicktime movie)
Clinton also praised Greenspan for helping steer legislation that repealed Depression-era banking and financial services laws that now allow banks, brokers and insurers to enter each other’s businesses. The Federal Reserve oversees the nation’s financial institutions and their activities.
"The Federal Reserve has been a remarkable institution with which to work and as I have indicated to you, I must say I have enjoyed every minute of it,” Greenspan said. "It really has been an extraordinary challenge and especially for an economist who likes to get into the nitty gritty of every statistic you've ever seen.” 
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