Alan Greenspan, 64, has become a key economic advisor to President Bush, who has named him to lead a commission to study a proposal to cut the tax rate on capital gains. During most of Bush's first two years in office, the administration and the Fed chairman were virtually in a state of war. Greenspan has cut the Federal Reserve's key discount rate twice in the last 6 weeks. While these cuts are justified on economic grounds, they also agree with economic goals of the Bush administration. Greenspan must guide the Fed through the concurrent crises of the war, recession, bank failures, budget deficits, and crashing consumer confidence. The economy is not doing well because of high interest rates or low inflation.
Alan Greenspan, 64, has become a key economic advisor to President Bush, who has named him to lead a commission to study a proposal to cut the tax rate on capital gains. Greenspan has cut the Federal Reserve's key discount rate twice in the last 6 weeks. While these cuts are justified on economic grounds, they also agree with economic goals of the Bush administration. Greenspan must guide the Fed through the concurrent crises of the war, recession, bank failures, budget deficits, and crashing consumer confidence. The economy is not doing well because of high interest rates or low inflation.