Alan Greenspan, influential former US Fed chairman, dies at 100

Washington: Alan Greenspan, the long-serving chairman of the U.S. Federal Reserve who shaped American economic policy for nearly two decades, has died at the age of 100, his wife said. Greenspan, who led the Federal Reserve from August 1987 to January 2006, died at his home from complications of Parkinson’s disease, according to a statement from journalist Andrea Mitchell. She described him as a figure who helped shape the U.S. economy across multiple administrations, adding that he would be remembered for both his brilliance and kindness. During his tenure, Greenspan oversaw the second-longest economic expansion in U.S. history, a decade of uninterrupted growth from March 1991 to March 2001. His decision to allow the economy to expand despite concerns over inflation helped sustain a prolonged period of prosperity and earned him a reputation as an economic “maestro”. He was widely credited for recognising a productivity surge in the mid-1990s that helped keep inflation in check, a judgment that has since been referenced by policymakers, including former Federal Reserve Chair Jerome Powell, as an example of the value of experience over purely technical models. However, Greenspan’s legacy was later overshadowed by criticism that his policies contributed to asset price bubbles and laid the groundwork for the 2007–2009 global financial crisis. His belief that market participants would act in their own long-term self-interest was challenged after the collapse, with Greenspan later admitting he had been “shocked” by the failure of that assumption. The Federal Reserve said in a statement that it noted “with deep sadness” his passing, adding that he brought rigorous analytical discipline to monetary policymaking and helped establish the institution’s credibility. Greenspan began his tenure shortly before the 1987 stock market crash and was praised for his swift response, injecting liquidity to stabilise markets. He later guided the economy through the 1990–1991 recession, the late 1990s Asian and Russian financial crises, the burst of the dot-com bubble in 2000, and the aftermath of the September 11 attacks. Despite his achievements, critics argued that his support for light regulation of financial markets contributed to excessive risk-taking by banks. His backing of tax cuts in 2001 also raised questions about his political independence, although he worked closely with both Republican and Democratic administrations during his career. Appointed first by President Ronald Reagan in 1987, Greenspan was reappointed by Presidents George H.W. Bush, Bill Clinton and George W. Bush, making him the second-longest-serving Fed chair. After leaving the central bank in 2006, he established a consulting firm and remained an influential voice on economic issues. Born in New York City in 1926, Greenspan initially pursued music, studying the clarinet and playing saxophone before turning to economics. He later studied at New York University and maintained an early association with novelist Ayn Rand, whose philosophy emphasised the role of free markets. Known for his cautious and often ambiguous communication style, dubbed “Fed speak”, Greenspan was regarded as one of the most powerful economic figures in the United States during his tenure. His career leaves a legacy defined by both historic economic expansion and intense debate over the policies that followed.