Alan Greenspan, Fed chair under 4 U.S. presidents, dies at age 100

Alan Greenspan, the economist who led the Federal Reserve under four U.S. presidents, passed away at the age of 100, his wife Andrea Mitchell confirmed on Monday. He died at home from complications related to Parkinson’s disease, according to a statement from Mitchell, who serves as NBC News’ chief Washington and foreign affairs correspondent.

Greenspan’s 18-year tenure as Fed chair—one of the longest in American history—spanned a period known as the Great Moderation, a time from the mid-1980s to 2007 characterized by steady growth, low inflation, and rising stock markets.

“His remarkable leadership left a lasting impact, and his commitment to economic policy and public service continues to influence central bankers around the world,” said John Williams, president of the Federal Reserve Bank of New York.

His time in office was not without turbulence. The 1987 stock market crash and the early-2000s dot-com bust both occurred during his watch. In 1996, he gained widespread attention for using the phrase “irrational exuberance” to describe the overheated investor sentiment driving internet stock valuations.

However, his legacy remains debated, particularly in relation to the 2008 financial crisis and the subsequent Great Recession. Though he had stepped down in early 2006, critics argue that his accommodative monetary policies in the years prior contributed to the housing bubble and subprime lending surge that triggered the worst economic downturn since the 1930s.

As The Economist observed in 2017, many viewed him as overly trusting in market self-correction, failing to act on emerging bubbles or strengthen financial regulation.

Greenspan pushed back against such critiques. In a 2007 interview with Fortune, he dismissed claims as revisionist, asserting he had raised concerns about subprime lending and other warning signs. Yet he also admitted misjudgments. In 2008, he told Congress he had wrongly assumed major financial institutions would act more cautiously to safeguard their own interests and those of their shareholders.

Earlier in his career, he admitted to underestimating the role of human behavior in economic models, once considering it irrelevant. Later, he recognized that key psychological and behavioral factors were missing from forecasting tools.

“People will always experience moments of euphoria and deep fear,” he told Fortune. “That part of human nature doesn’t change.”

Known for his carefully worded, often ambiguous public remarks, Greenspan shaped how central bankers communicate. While officials once avoided clarity, he advocated for greater transparency, arguing that surprising financial markets without reason was counterproductive. “You shouldn’t catch markets off guard unless there’s a clear purpose,” he said in a 2009 Federal Reserve oral history.

Born in New York City on March 6, 1926, Greenspan was the son of Herbert Greenspan, a stockbroker, and Rose Greenspan, a homemaker. His parents separated when he was five, a split influenced by financial strain following the 1929 market crash.

A math prodigy from an early age—he could mentally calculate three-digit sums as a child—Greenspan later pursued music, studying clarinet at Juilliard before turning to economics at New York University, where he earned advanced degrees.

During his studies, he became closely associated with novelist Ayn Rand, regularly attending her objectivist discussion group in Manhattan. His first professional role was at the National Industrial Conference Board, analyzing industrial demand, followed by founding the economic consultancy Townsend-Greenspan & Co.

He entered public service as an adviser to Richard Nixon during the 1968 campaign and later held key economic roles under Presidents Ford and Reagan. Appointed Fed chair by Reagan in 1987, he continued under George H.W. Bush, Bill Clinton, and George W. Bush. He married journalist Andrea Mitchell in 1997 and retired from the Fed in 2006.

When asked by Fortune if any president had pressured him to lower interest rates, Greenspan said he never received a direct request—though some came close. “A few hinted,” he remarked dryly. “But let me tell you—no politician ever called me to ask for higher rates.”

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Original Article Source: https://www.cbsnews.com/news/alan-greenspan-dies-age-100-federal-reserve-chairman/