FEDERAL RESERVE Greenspan expected to get 5th chairman term

At 78, Greenspan is the oldest Fed chairman.
WASHINGTON (AP) -- Alan Greenspan is expected to have no trouble winning Senate approval for a fifth term as chairman of the Federal Reserve, although Democrats may use the confirmation process to attack President Bush's economic record.
Bush formally announced Tuesday his decision to nominate Greenspan for another term, something he had said more than a year ago that he planned to do.
The announcement came little more than a month before Greenspan's current term was due to end June 20, leaving many economists wondering why Bush waited so long.
However, most were predicting that Greenspan's nomination should quickly win Senate approval, especially since he enjoys widespread support among both Republicans and Democrats.
"I would be shocked if there was much debate on this," said David Wyss, chief economist at Standard & amp; Poor's in New York.
Bush's economic policies
Nevertheless, Wyss and other analysts predicted that many Democrats would likely use the Greenspan confirmation hearing before the Senate Banking Committee to highlight what they see as the failings of Bush's economic program.
"Democrats will take the opportunity to criticize the administration and say that the prospect of the Fed raising rates is just one more problem for the economy to endure," said economist David Jones, author of four books on the Greenspan Fed.
Presumptive Democratic presidential nominee Sen. John Kerry decided not to wait for the hearings, expected next month, to start the criticism. In a statement released by his campaign Tuesday, Kerry praised Greenspan's overall record at the Fed as "one of distinction," but said Greenspan's handling of monetary policy had been undermined by soaring budget deficits under Bush.
"President Bush's complete abandonment of fiscal discipline has led to record deficits, destroying confidence and jeopardizing our economic future," Kerry said.
Bush had praised Greenspan for a "superb job" as Fed chairman and said he had "continuing confidence in his economic stewardship."
In his own statement, Greenspan said he was honored to be nominated again.
Long tenure
At 78, Greenspan is the oldest person ever to serve as Fed chairman. Tapped first for the Fed position by Ronald Reagan in 1987, Greenspan succeeded another legendary Fed chairman, Paul Volcker.
Greenspan, who was renominated by Bush's father and twice by Bill Clinton, has proved during his nearly two decades at the Fed to be very skillful in building consensus for an approach to monetary policy that has stressed small pre-emptive strikes to ensure that inflation does not get out of control.
Many economists believe another series of quarter-point increases in the Fed's key federal funds rate, the first rate increases in four years, will begin at the central bank's next meeting June 29-30.
The White House announcement Tuesday said that Greenspan was being nominated for a Fed chairmanship "not to exceed four years." White House spokesman Scott McClellan did not directly answer questions about whether Greenspan planned to serve the full four years of a new term.
"Obviously, there are term limits on the position, but the president wants him to continue to serve as long as possible," McClellan told reporters.