MercoPress. South Atlantic News Agency

Greenspan proposed for fifth term

United States president George Bush officially re-nominated Alan Greenspan for another four years as chairman of the US Federal Reserve. Mr. Greenspan who is 78 has already been in the job for four terms.

"Alan Greenspan has done a superb job as chairman?and I have great continuing confidence in his economic stewardship", said President Bush.

Mr. Greenspan's nomination which president Bush first said he was in favour of back in April now has to be approved by the US Senate.

Asked why the Bush administration was not looking for someone new for the job, a White House spokesperson said "the president wants him to continue to serve as long as possible".

The re-nomination signal was a relief for world markets that are concerned with the US growing budget and trade surplus.

Political analysts indicated that in spite of some strong positioning by Mr. Greenspan regarding deficits and tax cuts, "there's great respect between the Federal Reserve's chairman and members of the Bush administration".

On making the announcement the White House took the opportunity to highlight that "sound fiscal and monetary polices have helped unleash the potential of American workers and businessmen, and America's economy is now growing at the fastest in two decades".