MercoPress. South Atlantic News Agency

Greenspan returns to consulting business

The chairman of the United States Federal Reserve Alan Greenspan plans to open his own consulting business in Washington under the name of Greenspan Associates when he retires from the job next week, revealed the Wall Street Journal.

Greenspan is also likely to be a familiar face on the speaking circuit and apparently is planning to write a book about his 18 years as head of the world's most influential central bank.

Another Fed office Michelle Smith, who next Wednesday is leaving her job as Director of the Board Members Office is tipped to be one of the first associates to join Greenspan's consulting business.

Since joining the Fed in 2001, Smith worked as chief of staff for Greenspan and advisor in public relations and interacting with the political establishment and the media.

On retiring next Wednesday Mr. Greenspan will turn over the reins to Ben Bernanke who was nominated by President Bush to be the next Fed chairman.

By returning to consultancy Greenspan's life seems to be coming full circle: he started out as an economic consultant in New York City. From 1954 to 1974, Greenspan was a top executive at Townsend-Greenspan & Co. After serving as President Ford's top economic adviser, Greenspan returned to the economic consulting firm, remaining there until 1987 when he was tapped to be the chief of the Fed.

Since June 2004, the Fed has steadily raised the basic rate for federal funds thirteen times, and is expected to inch a further 25 basic points next Wednesday to 4.5%.