Alan Greenspan 's caution as Federal Reserve Chairman has become legendary . He fusses extensively over economic statistics , always seeking more information . He failed to make any announcement after the October 2008 stock market plunge , claiming that he wanted to see what happened on Monday morning . On Monday , the central bank took only modest steps to aid the markets and by the end of the week the federal funds interest rate dropped only .25 % . So far this caution had served the Fed well , but there are fears that the Fed 's reluctance to ease credit could lay the foundation for a new recession , perhaps starting early next year .
Alan Greenspan's caution as Federal Reserve Chairman has become legendary. He fusses extensively over economic statistics, always seeking more information. He failed to make any announcement after the October 13 stock market plunge, claiming that he wanted to see what happened on Monday morning. On Monday, the central bank took only modest steps to aid the markets and by the end of the week the federal funds interest rate dropped only .25%. So far this caution had served the nation well, but there are fears that the Fed's reluctance to ease credit could lay the groundwork for a new recession, perhaps starting early next year.