MercoPress. South Atlantic News Agency

Greenspan accepts a fifth term

Alan Greenspan said he would accept a fifth term as chairman of the Federal Reserve, the world's most influential central bank. Mr. Greenspan's comments, in a short statement, follow President George W. Bush public recommendation that he stay on the job for a fifth term.

"If President Bush nominates me and the Senate confirms his choice, I would have every intention of serving," Mr Greenspan said. "The president and I have not discussed this, but I greatly appreciate his confidence." Mr. Greenspan has been at the helm of the Federal Reserve since August 1987 when he was first proposed by former president Ronald Reagan, and his fourth consecutive term comes to an end June 2004

President Bush's remarks were very timely since there have mounting speculation that Mr. Greenspan would be replaced next year given his apparent open opposition to the current administration's massive and aggressive tax reduction plan to stimulate the US economy.

Mr. Greenspan who turned 77 in March has built a reputation as the world's leading monetary policy maker although since the fast growing years of the nineties have turned sour, criticism has emerged accusing the Fed chairman of acting with excessive caution. Nevertheless the Fed has cut interest rates to a 41 year low of 1,25%. However the coming months will see a formidable debate since Mr. Greenspan has warned about growing budget deficits and is contrary to new stimuli for the US economy while Republicans insist in tax cuts to help the share markets rebound, creating jobs and preparing the road for Mr. Bush re-election in 2004.

The original White House plan to cut taxes by 726 billion in ten years was actually reduced to 550 billion in the House of Representatives and to 350 billion in the Senate with the support of Democrats and moderate Republicans.