Bush backs another Greenspan term

Greenspan gets the job for another four-year term

President George W Bush has officially renominated Alan Greenspan to serve another four years as head of the US Federal Reserve.

Mr Bush said he had great confidence in Greenspan's continuing abilities to oversee the US economy.

"Alan Greenspan has done a superb job as chairman... and I have great continuing confidence in his economic stewardship," Mr Bush said.

Mr Greenspan, 78, has already been in the job for four terms of office.

Asked why Mr Bush was not looking at bringing in someone new for the top Fed job, a White House spokesman said "the president wants him to continue to serve as long as possible."

Approval across the board

Mr Greenspan's nomination, which Bush first said he was in favour of back in April, now has to also be approved by the US Senate.

In a nod towards this autumn's presidential elections, Mr Bush's spokesman was keen to add just how good the White House thinks the US economy has now become.

"Sound fiscal and monetary policies have helped unleash the potential of American workers and entrepreneurs, and America's economy is now growing at the fastest rate in two decades," said the spokesman.

Edwin Truman, who served for 17 years on the Fed's rate-setting committee, told the BBC's World Business Report that the decision was not political.

"There's a great deal of respect between Mr Greenspan and members of the Bush administration," he said.