"I understand 90%, 95% of what they're writing," Greenspan told
"When I didn’t know it, she did. And she explained it to me," Greenspan said of Yellen, the current Fed vice chair and a former
Greenspan served about 2 1/2 years on the Fed board with Yellen, during her first stint as a central bank governor from 1994 through 1997. They did not always get along.
Yellen was among a handful of Fed governors who took on Greenspan in 1995 regarding a rule on the way banks calculated interest rates on bank deposits.
Yellen was concerned that consumers were being misled about the true interest rate they were earning, and she successfully helped push through an amendment to a Fed regulation over Greenspan's opposition. It was one of only two votes he lost in more than 18 years as Fed chairman.
"She's a very bright lady. I think she will surprise everybody" in a positive way, Greenspan said of Yellen on Wednesday.
Obama nominated Yellen this month to succeed
Greenspan, a Republican, replaced Volcker. Bernanke took over for Greenspan in 2006.