Alan Greenspan, whose long tenure at the Federal Reserve made him one of the most influential economic policymakers in modern U.S. history, died Monday from complications of Parkinson’s disease.
By yourNEWS Media Newsroom
Alan Greenspan, the former Federal Reserve chairman who guided U.S. monetary policy through nearly two decades of expansion, market turbulence and dramatic economic change, died Monday at the age of 100.
His wife, Andrea Mitchell, said Greenspan died from complications of Parkinson’s disease.
“To me he was my husband, who shaped my life from our very first date in 1984,” Mitchell said. “He had ‘irrational exuberance’ for baseball, the Washington Commanders, tennis, golf, and music, especially jazz. He will be remembered for his brilliance and his kindness. Being his life partner was the joy of my life.”
Greenspan led the Federal Reserve for 18½ years, serving at the center of American economic policymaking during a period widely associated with sustained growth and prosperity. His time atop the central bank ended in 2006, two years before the U.S. economy entered a severe financial crisis that brought devastating consequences and reshaped public debate over regulation, risk and the role of the Federal Reserve.
During his career, Greenspan became one of Washington’s most closely watched figures. His statements were studied by investors, lawmakers and economists for clues about interest rates and the direction of the economy. By the time he left the Fed, he was widely known by admirers as the “Oracle” and the “Maestro”, a reflection of the stature he held during much of his tenure as head of the world’s most influential central bank.
Before leading the Fed, Greenspan also served in government as chairman of the Council of Economic Advisers. In that role, he was photographed at the White House alongside President Gerald Ford during Ford’s economic summit, an image that captured Greenspan’s early prominence in national economic policy circles.
Greenspan’s reputation, however, was later damaged by the collapse of the U.S. housing market and the financial crisis that followed. The unraveling of mortgage markets helped trigger a global economic downturn, threatened the stability of the U.S. banking system and pushed the nation into the worst recession since the 1930s.
Critics argued that Greenspan’s policies helped create conditions that left the financial system vulnerable, pointing in particular to easy-money policies and what they viewed as excessive confidence in financial markets operating with limited supervision.
Greenspan later acknowledged a flaw in his thinking about the ability of banks and financial institutions to manage their own risks without stronger oversight.
“I made a mistake,” Greenspan said, referring to his belief that the nation’s banks, whose stability supports the broader financial system and economy, could largely regulate themselves.
Despite the criticism that followed the 2008 crisis, Greenspan remained one of the defining economic figures of his era. His long service at the Federal Reserve placed him at the center of decisions that affected borrowing, lending, markets, employment and growth across the United States and around the world.