US President Mr George Bush yesterday nominated Mr Alan Greenspan to a fifth term as chairman of the Federal Reserve.

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

Reappointing the world's most powerful and renowned central banker, Mr Bush said: "Alan Greenspan has done a superb job as chairman... and I have great continuing confidence in his stewardship." The renomination fulfils a promise Mr Bush made nearly a year ago to re-appoint Mr Greenspan to another four-year term as chairman.

Mr Greenspan issued a short statement at the time saying that if nominated by the White House and confirmed by the Senate he would "have every intention of serving".

Under the current rules, Mr Greenspan would not be able to serve out the full four years, as his 14-year term as a member of the Fed's board of governors ends in January 2006.

Appointees can complete others' terms as governor before they are appointed to their own terms as Mr Greenspan did when he became chairman in 1987. But by law, an individual can only serve one 14-year term.

Mr Greenspan, who is 78, has cut back on travel in recent years and now gives more speeches by satellite. But the breadth of topics he has spoken about this year, from defending the Fed's monetary policy in the late-1990s to the role of education in the economy to advances in agricultural productivity provide little evidence that he is slowing down.

Unless there is a change in the law and assuming that Mr Greenspan completes his full term, his successor would take over shortly after the end of January 2006.

This will not happen until the White House proposes and the Senate confirms the candidate.