President George W. Bush renominated Mr Alan Greenspan last night for a fresh term as Federal Reserve chairman, clarifying the central banker's future at a time when the economy's performance could make or break Bush's re-election chances.
Mr Bush wanted the 78-year-old Mr Greenspan to lead the Fed "as long as possible," said White House spokesman Mr Scott McClellan.
As he spoke, Mr Bush met privately with Mr Greenspan at the White House. Mr Greenspan has done a "superb" job, Mr Bush said in a statement. "I have great confidence in his economic stewardship," he added.
Financial markets breathed a sigh of relief. The news helped to lift stocks and the US dollar.
Mr Bush said in April 2003 he planned to renominate Mr Greenspan before the Fed chief's term expired on June 20th. But as that date approached, some on Wall Street had begun to wonder whether something was afoot. Last night's announcement put that to rest.
Mr Greenspan, who has led the central bank since 1987, promptly accepted the offer. "I am honored to be nominated by President Bush," he said in a statement.