Alan Greenspan is renowned as one of the most influential Chairmen of the Federal Reserve System’s Board of Governors. His tenure as Federal Reserve Chairman spanned an impressive period from August 11, 1987, to January 31, 2006, covering nearly two decades. Remarkably, four different sitting presidents appointed Greenspan as chairman of the Fed, a testament to his enduring impact and bipartisan appeal. During his time in the nation’s most critical economic office, Greenspan popularized concepts like “irrational exuberance.”
Alan Greenspan’s illustrious career started at the National Industrial Conference Board, a non-profit organization where he analyzed the demand for aluminum, steel, and copper. From 1954 to 1974 and again from 1977 to 1987, he held the positions of president and chairman at Townsend-Greenspan & Company, an economic consulting firm based in New York City.
His foray into government service commenced under President Gerald Ford, serving as chairman of the President’s Council of Economic Advisers from 1974 to 1977. Under President Ronald Reagan, he chaired the National Commission on Social Security Reform from 1981 to 1983 and served on the Economic Policy Advisory Board and as a consultant to the Congressional Budget Office.
Upon becoming Chairman of the Board of Governors for the Federal Reserve, Greenspan faced the stock market crash known as Black Monday in October 1987, just months into his tenure. He acted swiftly to ensure liquidity in the markets. During his time at the Fed, Greenspan navigated the nation through two recessions, the 1997 Asian Financial Crisis, and the aftermath of the 9/11 terrorist attacks.
He was known for his strong stance against inflation, focusing on maintaining stable prices over achieving full employment. Many economists and historians credit him with overseeing and facilitating the longest period of economic expansion in American history. He was also recognized for his ability to build consensus among his colleagues on the Federal Open Market Committee regarding policy decisions.
In addition to his role at the Federal Reserve, Greenspan has served in numerous public and private sector positions. He has worked on various presidential appointments, including the Commission on Financial Structure and Regulation, the President’s Foreign Intelligence Advisory Board, the Commission on All Volunteer Armed Force, and the Task Force on Economic Growth. His corporate experience includes directorships at several major companies such as The Pittston Company, Mobil Corporation, Morgan Guaranty Trust Company of New York, J.P. Morgan & Co., General Foods, Capital Cities/ABC, Automatic Data Processing, and Alcoa (the Aluminum Company of America).
Following his resignation from the Federal Reserve Board of Governors, Greenspan founded his own consulting firm, Greenspan Associates, LLC, in Washington D.C. In 2007, he published his memoirs, “The Age of Turbulence,” which detailed his time in office.
Greenspan is remembered for several famous quotes on topics such as irrational exuberance, money printing, and the gold standard. Regarding the United States’ ability to meet its financial obligations, he famously stated, “The United States can pay any debt it has because we can always print money to do that. So, there is zero probability of default.” This statement echoed an earlier quote of his concerning inflation and the gold standard: “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.”
