Fed Chief Says He Would Serve 5th Term

Alan Greenspan, expressing appreciation for President Bush’s vote of confidence, said Wednesday that he is ready to serve a fifth term as chairman of the Federal Reserve.

In a brief statement, Greenspan, 77, said he would accept Bush’s nomination for another term as chairman, a position he has held since August 1987.

“The president and I have not discussed this, but I greatly appreciate his confidence,” Greenspan said. “If President Bush nominates me and the Senate confirms me, I would have every intention of serving.”

Bush’s announcement Tuesday that he believed Greenspan was doing a good job and deserved another term came a few hours before the Fed chairman underwent surgery to correct a non-cancerous enlarged prostate.

The Fed said Greenspan, who was treated for the same condition in 1994, had returned home Wednesday after an overnight hospital stay and planned to be back at work later this week.

Economists said Bush’s announcement, 14 months before Greenspan’s current term was to end, and Greenspan’s quick acceptance were aimed at easing financial market concerns over Greenspan’s future.

“This was an astute step to try to take one uncertainty off the table,” said Mark Zandi, the chief economist at Economy.com.

“In a very uncertain world, the fewer things that financial markets have to worry about the better.”

There had been growing speculation that Greenspan might not be renominated by Bush.

Conservative Republicans had been miffed in February when Greenspan, who had lent vital support to Bush’s first tax cut in 2001, threw cold water on Bush’s proposed second round of tax cuts.

Greenspan said the $726-billion package probably would not be needed as an economic stimulus measure because the economy would probably rebound once uncertainty over the Iraq war was lifted.

He also said any new tax cuts should be seen in light of rising government budget deficits.

While unnamed White House officials were quoted as saying that Greenspan should be dumped, the administration publicly played down any talk of a rift once the war began.