ever, he still managed to leave a good impression because the people who he had spoken to said that he was very insightful. Currently, Alan Greenspan is serving his third four-year term, ending in June 20, 2000, as Chairman of the Board of Governors of the Federal Reserve System. In addition, he serves as Chairman of the Federal Open Market Committee; the Systems principal monetary policymaking body (Board of Governors par. 1) President Ronald Reagan appointed Alan Greenspan as Chairman on August 11, 1987. A moderate Republican, he believed in deregulation of the banking industry and opposed government intervention in the economy, especially during the recession crisis of the early 1990s (Encarta par. 3). He was reappointed to the Board to a full 14-year term, which began February 1, 1992. He opposed tax cuts, believing that they would contribute to the growing federal deficit. Also, he supported President Clintons 1993 deficit-reduction programs because he believed that spending cuts were far better than tax increases (Encarta par. 3). In fact, he gets along better with the Clinton Administration than he ever did with its GOP predecessors. In February 1993, Hillary Clinton invited Greenspan to sit next to her while President Clinton gave his first State of the Union address. This close relationship between Clintons Treasury Department and Greenspan represented something new. Instead of baying at the moon, the president had reconciled himself to this own ineffectuality (Chait 24). Now, making disparaging remarks about the Fed is taboo. Clintons acceptance has consecrated Greenspans exalted status. Alan Greenspan has had a recent transformation in the public mind. In 1994, he was engineering a series of interest-rate increases, and the Federal Reserve chairman was called a zealot willing to strangle economic growth in pursuit of a chimerical goal of zero inflation (Church par.1). Today, many people are giving him cred...
