greenspan

According to NBC, citing a statement from Alan Greenspan's wife, former Federal Reserve Chairman Alan Greenspan passed away on June 22 at the age of 100.Greenspan was one of the longest-serving Federal Reserve Chairmen in U.S. history, having led the Federal Reserve from 1987 to 2006 for a total of 18 years, spanning the presidencies of Reagan, George H.W. Bush, Clinton, and George W. Bush. He was known for combating inflation and maintaining financial stability, and he dominated a decade-long economic expansion in the 1990s, being hailed by the market as the "Maestro" of the economy.However, Greenspan's historical evaluation is quite controversial. His long-standing advocacy for financial deregulation and maintaining low interest rate policies has been deemed by many economists as one of the key roots that led to the 2008 global financial crisis. At that time, the U.S. housing bubble burst, and the subprime mortgage crisis erupted, triggering a global financial tsunami. Greenspan himself rarely admitted during a 2008 congressional hearing that his belief in market self-regulation had "flaws," a statement that shocked Wall Street.Greenspan's passing marks the end of an era for a figure who shaped the modern global financial system.

Trump stated today that he hopes the next Federal Reserve chair will be like Alan Greenspan, who served as chair for a long time in the 1990s. He does not believe that strong economic growth necessarily leads to inflation or requires interest rate hikes, and he disagrees with the market's overreactions.During Greenspan's tenure, he cut interest rates in the early years and raised them later, allowing high-risk assets to rise. His policies fueled the tech stock bubble, which contributed to economic prosperity but also laid the groundwork for the 2000 internet crash. The later low-interest environment indirectly contributed to the 2008 housing crisis.

ChainCatcher message, The Wall Street Journal reviews Powell's 50 basis point rate cut, stating that the Federal Reserve's goal is to replicate the masterpiece of former Fed Chairman Greenspan in the 1990s, where the rate cut in 1995 laid the foundation for the subsequent soft landing of the U.S. economy and the prosperity of the late 1990s.