Alan Greenspan, the tough anti-inflation crusader credited by many for keeping the US economy on track for much of the past decade, was yesterday appointed to a fourth term as Federal Reserve chairman by President Bill Clinton.

"Clearly wise leadership from the Fed has played a very large role in our economy," said Mr Clinton, who lauded the country's "longest economic expansion ever".

Mr Greenspan (73) in turn praised the president and his economic team for their commitment to fiscal discipline, saying he "enjoyed every minute" of the job he has held since Ronald Reagan appointed him in 1987.

"For the past 12 years, chairman Greenspan has guided the Federal Reserve with a rare combination of technical expertise, sophisticated analysis, and old-fashioned common sense," Mr Clinton said.

"His wise and steady leadership has inspired confidence not only here in America, but all around the world," he added.

Mr Greenspan has received widespread praise from Wall Street as well as from Republicans in Congress for taming inflation in the US, and his appointment in a presidential election year is likely to remove a potential issue from the campaign.

The president noted that Mr Greenspan could have taken a more lucrative job in the private sector and said his decision to devote himself to public service was a cause for celebration.

The re-nomination is expected to win confirmation in the US Senate, where Mr Greenspan has been a hailed a hero for his leadership in the boom economy.

"I believe Alan Greenspan has been the finest in a long line of great central bankers," said Senator Phil Gramm, chairman of the Senate Banking Committee. "I have strongly supported his re-nomination and I am delighted that the president has reached the same conclusion," said Mr Gramm, who announced a confirmation hearing date of January 26th.

Mr Jim Leach, head of the House Banking panel concurred.

"The president has made a wise and timely decision," he said. "It underscores that the country has been served by an independent, non-partisan Federal Reserve."

Senator and presidential candidate Mr John McCain recently joked that not only would he re-nominate Mr Greenspan but that if the Fed chief died in office he would "prop him up and put a pair of dark glasses on him and keep him as long as we could".

But his rival for the Republican nomination, billionaire Steve Forbes, has questioned Mr Greenspan's re-nomination, countering his view that expansion always incurs an inflation risk.