By a vote of 91 to 2, the Senate overwhelmingly approved the nomination of economist Alan Greenspan to become chairman of the Federal Reserve Board, a position often referred to as the second most powerful post in the land. Mr. Greenspan will succeed Paul Volcker, whose term as chairman expires Thursday. Fed spokesman Joseph Coyne said that Mr. Volcker will stay on in the post until Mr. Greenspan is sworn in, probably next week. A widely respected economist who headed the Council of Economic Advisers under President Ford, Mr. Greenspan comes to the new job with considerable knowledge and experience. In presenting the nomination, however, Senate Banking Committee Chairman William Proxmire (D., Wis.) questioned whether the new chairman will act independently of the Reagan administration. Sen. Proxmire also criticized Mr. Greenspan's advocacy of banking deregulation. The only two senators to vote against Mr. Greenspan were Sen. Kent Conrad (D., N.D.) and Sen. Bill Bradley (D., N.J.). In a statement, Sen. Bradley said he is concerned that the new chairman "would move too rapidly toward deregulation" and that he lacks sufficient international experience. "My personal preference," Sen. Bradley said, "would have been for the administration to prevail upon Chairman Volcker to stay for another term." After the vote, Mr. Greenspan said, "I'm obviously gratified and I thank the Senate." As chairman of the Fed, Mr. Greenspan will be in a position to influence monetary policy and affect the economy's performance over the next four years. He has developed a reputation as a determined inflation-fighter, and is generally expected to follow monetary policies similar to those of his predecessor. President Reagan issued a statement after the vote thanking the Senate for its "overwhelming support" for Mr. Greenspan. Mr. Volcker's departure marks the end of a turbulent era at the Fed. When he was named chairman in 1979, inflation was running at double-digit rates. By keeping a tight grip on credit, despite severe economic and political pressures, Mr. Volcker and the Fed were able to bring that rate down to less than 2% last year.
The Senate overwhelmingly approved the appointment of economist Ford to become chairman of Senate , a position called the second most powerful in the country. Only two senators, the Federal Reserve Board and Bradley of New Jersey --both Democrats , voted against the appointment. Greenspan , who headed Conrad of North Dakota under President Greenspan , has considerable knowledge and experience. He has developed a reputation as an inflation-fighter. He is in a position to influence monetary policy and affect the economy's performance over the next four years .