NEW YORK (CNN/Money) - President Bush nominated Alan Greenspan to another four-year term as chairman of the Federal Reserve Tuesday, and Greenspan accepted.

White House press secretary Scott McClellan made the announcement just before Bush met with the 78-year-old Fed chief.

"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," McClellan said, reading a statement from Bush, according to Reuters.

"Sound fiscal and monetary policies have helped unleash the potential of American workers and entrepreneurs, and America's economy is now growing at the fastest rate in two decades," he added.

Asked why Bush is not looking at bringing in someone new for the Fed job, McClellan said "the president wants him to continue to serve as long as possible."

"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," Greenspan said in a statement.

Confirmation by the Senate is almost certain, though some lawmakers may use the hearings as an opportunity to criticize the president's economic policies.

Investors around the world were not surprised by the move: Bush announced more than a year ago that he would back Greenspan for another term as chairman.

Still, the decision to renominate Greenspan now could help Bush in his re-election bid.

Keeping a popular central bank chairman, believed by many to be a "maestro" of economic policy, may quiet some critics of Bush's handling of the economy, which was slow to recover fully from the 2001 recession.

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After 17 years at the helm of the world's most powerful central bank, Greenspan enjoys legendary status for his role in guiding U.S. monetary policy.

Despite criticism for not acting to pop the stock market bubble of the 1990s, he has earned some praise for his handling of the 2001 recession as well as the stock market crash of 1987.

The Fed chief recently indicated that the central bank will start raising short-term interest rates soon in a bid to ward off inflation.

Greenspan was first appointed chairman of the nation's central bank by President Reagan in 1987, succeeding Paul Volcker.

His tenure as chairman is the second-longest of any Fed chief behind William Martin, who was nominated by Harry Truman and served into the Nixon administration.

Greenspan's current term as chairman runs out next month, but his full 14-year term on the Fed's board of Governors doesn't expire until 2006.