Greenspan's last day brings interest rate rise

You can take Federal Reserve chairman Alan Greenspan away from the Fed, but you can't take the Fed chair away from Alan Greenspan.

On his last day as head of the US central bank, Greenspan raised interest rates, collected a few autographs, had a nice lunch of grilled salmon and chocolate cake - and then took his boardroom chair with him into semi-retirement.

A Fed spokeswoman said one of the chairs used by Greenspan during his 18-year tenure was given to the 79-year-old Fed chief as a going-away gift from his colleagues.

Greenspan, a noted baseball fan, was also given a shadow box in the shape of home plate. The box, used to display and protect memorabilia, contained an old-fashioned baseball glove signed by the Fed bank presidents.

The gifts were given at a luncheon in Greenspan's honour yesterday following his final meeting of the policy-setting Federal Open Market Committee - the 149th such gathering attended by Greenspan.

"I know this institution will go on doing extraordinary things, and I will look on from the sidelines and cheer," Greenspan told the guests.

FOMC colleagues and Fed staff greeted Greenspan with a standing ovation as the FOMC meeting began. Policy-makers raised official interest rates a quarter of a percentage point to 4.5 per cent, as expected.

Photographers and television crews were allowed into the committee room to record a few minutes for posterity - a highly unusual step for the secretive central bank.

After the meeting, about 180 people, including Greenspan's wife, Andrea Mitchell, a television journalist, joined him at his farewell luncheon. A larger reception was later held for some 1500 staffers in the Fed's two-storey atrium.

"We have a very special mission. We are in charge of the nation's currency and the central bank, because of that, is involved in everyone's daily lives. We are the guardians of their purchasing power," Greenspan told the gathering.

White House adviser Ben Bernanke was confirmed by the US Senate yesterday to take over from Greenspan and will be sworn in today for a renewable four-year term, with a 14-year term on the Fed's board.

Greenspan plans to write a book, open a consulting service and will be in demand for speaking engagements.

Greenspan's Fed connections won't be severed by his new career - each FOMC member gave him a business card, with a signed and framed dollar bill from each Fed bank district.

- REUTERS