Jan. 31, 2006: Congressional Record publishes “TRIBUTE TO ALAN GREENSPAN”

Jan. 31, 2006: Congressional Record publishes “TRIBUTE TO ALAN GREENSPAN”

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Volume 152, No. 9 covering the of the 109th Congress (2005 - 2006) was published by the Congressional Record.

The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.

“TRIBUTE TO ALAN GREENSPAN” mentioning the Federal Reserve System was published in the Senate section on pages S360 on Jan. 31, 2006.

The publication is reproduced in full below:

TRIBUTE TO ALAN GREENSPAN

Mr. FRIST. Mr. President, today marks the end of one of the most outstanding public service careers in this country's history.

Today, Dr. Alan Greenspan steps down as Chairman of the Board of Governors of the Federal Reserve System.

These last 18 years many accolades have been showered on Chairman Greenspan's leadership in steering monetary policy--a period that included some very difficult waters.

But I think the true strength of his leadership can be measured by the numbers. The Chairman, I understand, devours statistics in helping to make sound decisions. And the measurable results have been impressive.

Since being appointed to the chairmanship--first by President Reagan in August 1987, and then, later, by Presidents George Bush, Bill Clinton, and George W. Bush--U.S. economic growth has averaged 3 percent per year.

The annual rate of increase in consumer prices has similarly averaged a low 3 percent annually.

If price stability is the key responsibility of our independent Federal Reserve System, one can only conclude that Chairman Greenspan's leadership has been extraordinarily successful.

Meanwhile, the number of payroll jobs in America has grown from 102 million when he took on the chairmanship to nearly 135 million today. The unemployment rate has averaged slightly more than a low 5\1/2\ percent.

But Chairman Greenspan has been more than an outstanding captain of the economic seas. He has been a shrewd analyst and forecaster, shaping the economic future.

One key statistic that the Chairman brought to the public's attention--and particularly to those of us involved in the policy process--is the issue of productivity.

He was the first to recognize that the rise of productivity allowed unemployment to fall lower than many economists thought possible without stoking the fires of inflation, therefore, allowing the Federal Reserve to keep interest rates low.

Over his tenure, productivity growth averaged 2.2 percent per year, nearly double the rate of growth in the seventies and eighties.

There were major challenges along the way:

Only 2 weeks after taking his position at the Federal Reserve, the stock market dropped nearly 23 percent--marking the worse 1-day decline in the market's history.

There was an Asian and Russian financial crisis in 1998.

And, of course, the tragedy of September 11 that hit directly at the heart of our financial system.

In each instance, quick action by the Chairman to provide liquidity into the market through interest rate decisions allowed for the economy, indeed the global economy, to right itself, stabilize, and continue to grow.

One measure of the Chairman's counsel has been his highly anticipated testimonies before the Committees of Congress. Those hearings have always been sold out, headliner events. We have always listened very closely.

On a more personal level, it has been my distinct pleasure to have gotten to know Alan Greenspan and discuss informally with him the challenges that confront this country--in particular, our health care system and the increasing costs of health care, pensions and public entitlements.

I will miss those discussions with Mr. Greenspan. But I am confident that he will continue to offer his wise counsel to those who request it. For he will always remain, at heart, a public servant seeking to better the lives of citizens throughout this country and the world.

A counselor to Presidents and Congresses, a thoughtful thinker, flexible and non doctrinaire, Chairman Greenspan possesses the rare ability to communicate complicated ideas clearly and to make difficult decisions under complex, dynamic and uncertain conditions. For 18 years, he has done so consistently. For 18 years, he has done so masterfully.

Alan Greenspan leaves the Federal stage a giant in his field.

And if my high praise suggests a dash of ``irrational exuberance,'' so be it. Chairman Greenspan is deserving of our highest regard.

On the passing of John Maynard Keynes, the British economist Alfred Marshall wrote that: ``a great economist must possess a rare combination of gifts: mathematician, historian, statesman, philosopher.'' Alan Greenspan possesses each in large measure.

Thank you, Mr. Chairman, for your outstanding service to your country and to your fellow Americans.

On behalf of the U.S. Senate, best wishes to you in all of your future endeavors.

____________________

SOURCE: Congressional Record Vol. 152, No. 9

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