“President Bush said Tuesday that Alan Greenspan deserved appointment to a fifth term as chairman of the Federal Reserve, in effect leaving to Mr. Greenspan the decision of whether to extend his long tenure as head of the central bank.” Writes Richard Stevenson in today’s New York Times.

“Responding to a question in an interview with financial journalists about whether Mr. Greenspan had done well enough to be reappointed, Mr. Bush replied: “Yes. I think Alan Greenspan should get another term.” White House officials said later that Mr. Bush would renominate Mr. Greenspan next year before Mr. Greenspan’s current four-year term expires in June.”

“The chief effect of Mr. Bush’s statement was to end any speculation about whether the White House might seek to name someone else as Fed chairman next year, in the heat of the presidential campaign, when the state of the economy is likely to be a political issue.”

“Mr. Greenspan, who turned 77 last month, has been Fed chairman since 1987, serving four presidents and seeing the economy through two recessions, a stock market bubble and the longest expansion on record. Speculation about his future has been rife on Wall Street and in Washington for years and flared up again late on Monday when the Fed announced that Mr. Greenspan would undergo routine surgery today for an enlarged prostate.”

“Late Tuesday, the Fed issued a statement saying the surgery was successful. Mr. Greenspan, the statement said, ‘will be recuperating in the hospital overnight and expects to be back in his office later this week.’ “

“On Monday, the Fed said tests for prostate cancer had been negative. Mr. Greenspan underwent similar surgery, for what is known as benign prostatic hypertrophy, in 1994.”

“Fed officials said they had no word on whether Mr. Greenspan wanted to continue beyond his current term, which expires June 20, 2004. If Mr. Greenspan were to step down then, he would have been in office 16 years and 10 months, making him the second-longest-serving Fed chairman after William McChesney Martin, who held the job for 18 years and nine months, ending in 1970.”