it for the happy state of the U.S. economy. Economist Allen Sinai said, The Greenspan Fed is the all-time champion in American history (Church par. 1). In 1996 and 1997 he didnt do much of anything to the interest rates. From February 1996 to December 1997, the Fed made only one change in interest rates: a quarter-point increase in March of 1997. He resisted pressure from inside and outside the Fed to slow down the economy. Instead of being overly concerned about inflation, he seemed to have accepted the idea that deep changes in the economy have made sustained growth possible without pushing prices up. (Church par. 2) Because of Alan Greenspan, the Fed has learned to be more patient. It allows the economy to grow faster than expected without putting on the brakes by raising interest rates. However, Greenspan always stays on guard. He is a renowned numbers cruncher who keeps tabs on the most obscure corners of the economy. Robin Leight-Pemberton said that he was likely to back up his predictions by citing such obscure data as vacuum-cleaner sales in Iowa (Church Par 3). Greenspan is reaping the praise of the financial community. There is a widely held sense that he has masterminded the nations prosperity. As many people are becoming stockholders, they regard him as a living god to be regarded with helpless awe (Chait 20). This appreciation arises largely from the fact that people do not fully understand just what he does. The Federal Reserve can only directly affect the interest rates (figure 1). The effects can take awhile to be felt. The Fed can cause recessions, or it can let them last too long, or it can overreact. Like a barber with a chainsaw, Greenspan has a lot of power but not much control (Chait 20). To Greenspans credit, he has let the economy run its course to see what happens. Doing something to prevent inflation might have messed up the economy. Instead, he has presided over an economy that is capable ...
